Lumber prices extended their losses, dipping below $500 per thousand board feet and reaching their lowest level since early November, as available supply continued to surpass product demand. Lumber demand has yet to rebound in 2024 following a sharp decline in 2023, with high interest and inflation rates continuing to suppress new housing construction. In addition, prospects for a demand recovery this year have been weakening, with investors reducing bets on interest rate cuts by major central banks due to stubbornly high inflation rates. The Federal Reserve, during its May meeting, announced that officials would maintain the current level of borrowing costs for longer than expected. Meanwhile, British Columbia-based forest products company Interfor announced plans to reduce its lumber production by approximately 175 million board feet between May and September of this year, which represents just under 10% of its normal operating stance, citing persistently weak market conditions.
Lumber decreased 71.45 USD/1000 board feet or 12.48% since the beginning of 2024, according to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity. Historically, Lumber reached an all time high of 1711.20 in May of 2021. Lumber - data, forecasts, historical chart - was last updated on May 5 of 2024.
Lumber decreased 71.45 USD/1000 board feet or 12.48% since the beginning of 2024, according to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity. Lumber is expected to trade at 510.25 USD/1000 board feet by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 543.87 in 12 months time.