lumber futures

lumber futures fall

May 29th, 2013

Lumber futures fell the most in 17 months on speculation that North American mills from Texas to Alberta are boosting output.

Lumber soared 44 percent last year as a jump in U.S. housing starts strained supplies following a cut in capacity during the property slump. Mills coming back online are easing constraints, said Steven Chercover, an analyst at DA Davidson & Co. in Lake Oswego, Oregon. Today, futures declined the most allowed by the Chicago Mercantile Exchange for the second straight day and reached a seven-month low.

“Supply is coming back on stream and catching up to demand,” Chercover said yesterday in a report. “Workers are returning to the mills and the timberlands. End-users are minimizing or deferring purchases in order to get what they need cheaper next week.”

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December 26th, 2012

Lumber futures jumped to the highest in seven years after U.S. home prices climbed more than forecast in October, adding to signs of stabilization for the housing market.

The S&P/Case-Shiller index of property values in 20 cities increased 4.3 percent from October 2011, the biggest 12-month advance since May 2010, the group said today. The median forecast of 30 economists in a Bloomberg survey projected a 4 percent gain. The average rate of housing starts from September through November was the strongest since the three months ended August 2008, the Commerce Department said last week.

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October 18th, 2012

Lumber Futures – North American lumber mills are operating at the fastest pace in four years as U.S. home building rebounds, just as the worst beetle infestation on record curbs supply.

About 52.5 billion board feet, the standard industry measure, will be sawed this year, 5.4 percent more than in 2011 and the most since 2008, CIBC World Markets estimates. Lumber traded on the Chicago Mercantile Exchange may rally 11 percent to $350 per 1,000 board feet by March, the highest since 2006, said Paul Jannke, an analyst at Forest Economic Advisors LLC, a Westford, Massachusetts-based industry consultant.

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