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Surge in lumber prices in US
19/04/2010
Chicago Mercantile Exchange lumber future prices surged to their highest level in almost three years on Friday following a rise in cash lumber prices and an unexpected increase in activity in the US construction industry.
At close of business on Friday, CME May lumber futures 2LBK0 were trading at $315 per tbf, the highest level for a lead contract since the end of July, 2007.
Traders commented that lumber dealers had allowed their inventories to run low when house building and other lumber demand were slow. But lumber dealers are now hastening to rebuild their inventories, with demand picking up.
On Friday, the lumber analyst firm Random Lengths reported cash spruce lumber up $8 from a week ago, at $308 per tbf.
One of the factors fuelling the gain in lumber prices was the release of a Commerce Department report, which showed a higher than expected increase in housing starts and building permits in the US in March. Starts increased by 1.6 per cent to their highest levels in 17 months and home-building permits rose 7.5 per cent, also to a 17 month high.
Home building is the largest user of timber in the US.
At close of business on Friday, CME May lumber futures 2LBK0 were trading at $315 per tbf, the highest level for a lead contract since the end of July, 2007.
Traders commented that lumber dealers had allowed their inventories to run low when house building and other lumber demand were slow. But lumber dealers are now hastening to rebuild their inventories, with demand picking up.
On Friday, the lumber analyst firm Random Lengths reported cash spruce lumber up $8 from a week ago, at $308 per tbf.
One of the factors fuelling the gain in lumber prices was the release of a Commerce Department report, which showed a higher than expected increase in housing starts and building permits in the US in March. Starts increased by 1.6 per cent to their highest levels in 17 months and home-building permits rose 7.5 per cent, also to a 17 month high.
Home building is the largest user of timber in the US.
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