Lumber Poised to Fall With Autumn’s Approach

By Ryan Dezember
The Wall Street Journal
September 11, 2020
Category: Finance & Economics
Region: Canada, United States

Lumber prices notched a record on Thursday but are likely to fall back to earth. September lumber futures closed at $939 per thousand board feet, eclipsing the previous high mark. There are a few more days for prices to push farther into record territory before that futures contract expires on Sept. 15 and prices make their seasonal step down. Most trading has moved to November futures, which closed Thursday at $611.40. Lower prices for autumn wood are typical in the highly seasonal market. Yet the current price is still roughly 80% more than what futures usually fetch in fall, when demand from DIYers wanes and inclement weather freezes home construction in the northern U.S. …“The question will be just how long can the builders continue to build at this pace before the weather starts to dial it back,” Devin Stockfish, Weyerhaeuser’s chief executive, said at a recent investor conference. [We respect the copyrights of the source publication – full access may require a subscription]

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