Lumber Prices Spike After Renewed Demand From Hot Housing Market

Lumber prices surged 5% on December 9th to $1,024 per thousand board feet as demand remains steady amid global supply-chain issues, reports Insider. The latest estimates reveal the first increase above $1,000 since mid-June after prices peaked above $1,700 in May.

The commodity is down 41% from its recent high and is only up 12% year-to-date after flooding in Canada delayed lumber exports despite consistent demand from the US. Market experts expect prices to stabilize after a series of highs and lows throughout 2021, but unprecedented factors continue to delay shipments of lumber goods from major producers.

Lumber prices surged 5% on Thursday to $1,024, jumping back above the $1,000 per thousand board feet level for the first time since mid-June as the commodity experiences heightened volatility amid supply chain issues and steady demand from home builders.

Lumber has experienced a wild 2021. Prices peaked above the $1,700 in May and subsequently fell as much as 74% before bottoming around $452 and rebounding 127% to its current level. The commodity is still down 41% from its recent high, and is only up 12% year-to-date.

Where lumber prices go from here is anyone's guess, but TradeStation's David Russell expects the volatility to normalize going forward.

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