Falling lumber prices are sounding an alarm on Wall Street about potential problems on Main Street. Wood markets have been whipsawed of late by trade uncertainty and a deteriorating housing market. Futures have dropped 23% since hitting a three-year high at the beginning of August and ended Friday at $535 per thousand board feet. The price drop might have been greater—but two of North America’s biggest sawyers said last week that they would curtail output, slowing the decline. Crashing wood prices are troubling because they have been a reliable leading indicator on the direction of the housing market as well as broader economic activity. …Analysts and traders say there will have to be further cuts to ease the glut of wood. That might not be a problem, given how higher duties have pushed up Canadian sawmills’ break-even prices while demand wanes. “We anticipate further closures or curtailments,” said Truist Securities analyst Michael Roxland. [to access the full story a WSJ subscription is require]