JRE - Behind The Renewed Interest In Lumber Markets
2024-04-24 14:30:00 ET
Summary
- Volatility in lumber prices has come off record highs the market experienced during the coronavirus pandemic, but questions around supply and demand still remain.
- Given that consumer demand has started to see some modest growth while supply remained somewhat depressed, lumber prices have ticked slightly higher in 2024 than the lows experienced through periods of 2023.
- We spoke with three lumber market participants, who share their experience with managing uncertainty and their outlook on the broader lumber market.
Originally Posted On April 22, 2024
By Alison Coughlin
At A Glance
- A record wildfire season in 2023 is still revealing its effects on the market, one factor driving hedging in lumber futures
- Interest in the CME Group Lumber contract launched in 2022 soared to a record 10,000 in open interest amid increasing uncertainty over supply and demand