Lumber prices plunged to around $500 per thousand board feet, a level not seen since November 2023, pressured by worsening demand prospects from the key property sector. Latest releases revealed that housing starts, a crucial gauge of future demand, in the two of world's largest consumers, the US and Canada, fell sharply below forecasts in March. The poor need for building materials coincided with rising output since Canadian lumber production surged by 16.4% year-over-year in January 2024, while sales growth lagged at 11.2%. Furthermore, strong US economic data and hawkish pronouncements from Fed officials have dampened bets of regulator's interest rate cuts. A prolonged period of tighter monetary policy translates to higher mortgage rates, ultimately weakening the construction activity outlook.
Lumber decreased 72.47 USD/1000 board feet or 12.66% since the beginning of 2024, according to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity. Historically, Lumber reached an all time high of 1711.20 in May of 2021. Lumber - data, forecasts, historical chart - was last updated on April 25 of 2024.
Lumber decreased 72.47 USD/1000 board feet or 12.66% since the beginning of 2024, according to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity. Lumber is expected to trade at 543.32 USD/1000 board feet by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 580.15 in 12 months time.