In the past month, lumber market prices continue to consistently fluctuate up and down and current conditions do not provide a clear direction.
There’s almost an earie hush in the industry as traders aren’t quite
sure what to say aloud.
Current Considerations:
- Housing permits and starts consistently report strong
- New residential construction predictions stand solid. This is driven by crazy, almost insanely low interest rates partnered with extremely low housing inventories in states growing in population. Arizona continues to fall in the top 3 of population growth
- Lumber demand is expected to continue in the area of home improvements as people continue to spend time at home and choose renovation projects in place of travel and entertainment
- Trucking continues to be difficult to locate and EXPENSIVE
There is undoubtedly much more price turmoil to come in the lumber markets, but right now the futures price curve isn’t providing many easily readable clues as to the future of overall lumber prices. Stay tuned. – – Forbes https://www.forbes.com/sites/salgilbertie/2020/12/21/lumbers-latest-price-rally-signals-stronger-for-longer-spring-prices/?sh=5eb355b02f96
Source: Random Lengths, used here with permission granted by the publisher.