Monday, April 28, 2025

Latest

Lumber Prices Retreat to Nine-Month Low as Sawmills Catch Up to Demand

Lumber prices have fallen to the lowest in over nine months, as demand from homebuilders stabilizes and sawmills boost production output.

Lumber futures on the Chicago Mercantile Exchange plummeted to around $500 for the upcoming September contract, marking the lowest since November 2020, as prices fell by nearly 70% since their record peak in May.

The sharp decline marks a sudden reversal in the skyrocketing trajectory of building material costs, as demand in the construction and home renovating sector forced lumber supply to significantly tighten. Since May’s peak, though, sawmills have been able to relieve some of the output constraints, while supply bottlenecks for other building materials, such as windows and siding, have forced the overall pace of construction activity to slow.

“While most of the wood out there today is pegged for a job site, the slowdown keeps it all backed up,” RCM Alternatives analyst Brian Leonard explained to Bloomberg. “The industry has to work through that issue before it goes back to the mills to buy. That is forcing the mills to lower prices daily to get rid of prompt wood.”


Information for this briefing was found via the CME and Bloomberg. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

Bell Q3 Earnings: Massive Impairments. Guidance Cuts. A Mess.

Alamos Gold Q3: Record Revenue & Production Amid Rising Costs

The Junior Mining Market Is Back

Recommended

Germany Looks To Modernize Military Recruitment But Stops Short of Conscription

First Majestic Silver Posts Topline Revenue Of $146.1 Million In Q3 2024

Related News

Lumber Prices Soar 250% as Pandemic Pushes Home-Building Higher

Lumber prices have surged by almost 250% since April 2020, significantly threatening housing affordability across...

Saturday, May 1, 2021, 05:01:00 PM

Where’s The Beef? Meat Processors Hammered By Coronavirus

It appears that the forewarning offered previously by the United Nations in regards to food...

Wednesday, April 15, 2020, 02:35:37 PM

Lumber Prices Plummet Amidst Weakening Demand

Lumber prices have plummeted to around $500 per thousand board feet, marking a stark departure...

Friday, April 19, 2024, 12:37:42 PM

CME Group And Nasdaq To Launch First-Ever Water Futures Contract

As the global water supply continues to suffer from scarcity, it is projected that almost...

Thursday, September 17, 2020, 03:17:00 PM

Canadian Factory Prices Jump By Most Since 1980

Industrial prices across Canada are accelerating at the fastest pace in over 40 years amid...

Sunday, May 16, 2021, 11:35:00 AM