WFG - Lumber erases 2021 gain but analyst sees much higher average price level

PaulGrecaud/iStock via Getty Images Lumber futures (LB1:COM) have surrendered all of their astronomical 2021 gains, settling -5.6% today to $712.90 per 1,000 board feet in Chicago, as demand eases and supply expands in response to earlier gains. At one point, lumber futures were trading as high as $1,733.50 per 1,000 board feet, more than quadruple the level of a year earlier. Prices have declined on rising inventory levels and a "significant drop" in lumber demand at large retail stores, as fewer purchases from do-it-yourself home renovators have made more wood available, lumber trading strategist Greg Kuta of Westline Capital Strategies tells Bloomberg. Lumber has turned lower even as wildfires rage and railcars are gridlocked in British Columbia, a major producing region. But prices remain historically high, as lumber futures have mostly in the $200-$400 per 1,000 board feet range before everything changed in the pandemic. Lumber prices are undergoing a "paradigm

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Lumber erases 2021 gain but analyst sees much higher average price level