Canada is the second-largest exporter of wood products in the world, after China, with lumber being our dominant export. …The United States produces 40 billion board feet and consumes 60 billion board feet of lumber on average each year, with most of the difference coming from Canada, where we produce 25 billion board feet annually. …During recessionary times, and especially with rising interest rates, we see a slowdown in housing starts that causes a reduction in demand for lumber, thereby softening prices. Rates are expected to continue to climb by at least another percentage point into the new year as a means to slow inflation. We therefore expect lumber prices to remain at or below their current level until the next economic expansion, though a lower than average housing stock and/or reduced wood supply could affect this outlook. [to access the full story a Globe & Mail subscription may be required]