Stick Trade Blog

Hardwood Lumber & Softwood Who...

Posted April 15th, 2011

Wholesale lumber prices are still soft and with that, firms are struggling. Universal Forest Products announced a first quarter loss and cited ‘continued challenging economic conditions’. CME lumber
prices as of today 4/15 are at US$149.90 for May.There was hope that the traditional spring demand for housing starts would increase demand for lumber inventory. February 2011 seasonally adjusted housing starts were 517,000 and this is below January. It will be interesting to see how wholesale lumber prices
change when March housing start figures are announced. Demand continues to be strong in Asia putting upward pressure on hardwood log and softwood log prices. China demand remains firm and Japan should be importing more logs and lumber for rebuilding. This puts mills in the squeeze of higherlog prices and lower lumber prices.The wholesale lumber price barameter my change next week as March housing start figures are announced by the Census Bureau.

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News and Analysis from Sticktrade.com

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Lumber | Hardwood Lumber