Lumber futures sink from a more than 2-decade high

By Myra Saefong
Market Watch
November 3, 2017
Category: Business & Politics
Region: Canada, United States

Futures prices for lumber dropped Thursday from a more than two-decade high, as anti-dumping and antisubsidy duties on lumber imports from Canada announced by the U.S. Commerce Department came in lower than expected. November lumber  traded in Chicago fell 3.7% to settle at $449 per 1,000 board feet on Thursday. It finished at $466.40 on Wednesday—the highest settlement since November 1996. Adam Koos, president of Libertas Wealth Management Group, said that “plans earlier this year were to impose penalties as high as 31%.” “Instead, countervailing duties came in at 14.25% with anti-dumping duties at 6.58% for a milder total of roughly 21%,” he said. “So, while the U.S. has reiterated softwood lumber tariffs will be upheld, the duties imposed are actually going to be lower than expected, which is leading to higher lumber prices.”

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