Softwood lumber demand remains consistent despite uptick in economy

By Joe Pruski
RISI Fastmarkets
October 1, 2024
Category: Finance & Economics
Region: Canada, United States

The softwood lumber market’s reaction to last week’s encouraging economic news remained moderate at best. Demand was steady in most species, but news of reduced interest rates fell far short of jump-starting sales. As a whole, prices wavered and the Random Lengths Framing Lumber Composite Price dropped $1 for the second consecutive week. Western S-P-F sales were unspectacular. …Lumber futures surged early in the week, but the board gave back on Wednesday. The front month continued to carry a premium to the physical market, affording some traders basis opportunities. Hurricane Helene’s approach through the Gulf of Mexico interrupted an otherwise steady Southern Pine market. Buyers covered mostly immediate needs in early trading and scaled back new orders as the week progressed. …A perception that recent curtailments across the South had aligned supplies more closely with demand infused a firmer tone into the market.

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