7/11/2007
2007 lumber prices may be inching up.
According to an article by J Haughey lumber prices may be
inching up. Haughey states that "Contractors have enjoyed depressed
lumber prices for over a year. Random Lengths reports that framing
lumber prices have stayed mostly in the $280-$300 range per
1000 board feet since last July after several years in the $350-400
range with a spike to over $450 early in the housing boom in
2004. The Producer Price Index for softwood lumber shows the
same price trends. But commodity futures markets expect lumber
prices to progressively increase 15% over the next year. Reed
Construction Data expects lumber prices to keep rising late
next year, returning to the more normal $350 level by the end
of 2008. Rising prices will continue into 2009."
7/11/2007
Strong Canadian Dollar Hits Lumber Producers Hard
The strong Canadian Dollar has squeezed profitability
of Canadian lumber mills to the lowest level in years. The Canadian
press reported, "A strong Canadian dollar and low prices
are pushing newsprint and lumber producers to their lowest profitability
in years, a Desjardins analyst suggested Tuesday as Canada's
paper and forestry companies prepare to report their second-quarter
results.Analyst Pierre Lacroix suggested that even pulp producers
have seen their price gains eroded by the strong loonie and
other cost pressures."
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