WFG - Lumber slumps by exchange limit; analyst says prices dropping sharply

July lumber futures (LB1:COM) reportedly have fallen by the exchange maximum $42, or -3.1%, to $1,284.20 per 1,000 board feet on the Chicago Mercantile Exchange, extending last week's first weekly loss in benchmark lumber prices since January.Citing trade journal Random Lengths, CIBC analyst Hamir Patel tells Bloomberg that Western spruce-pine-fir prices fell by $130, or -8.1%, compared to last week's $1,470 per 1,000 board feet, and Southern yellow pine 2x4 lumber shed $92, or -6.9%, to $1,236 per 1,000 board feet.ETFs: [[WOOD]], [[CUT]], [[NAIL]], [[XHB]], [[ITB]]Potentially relevant tickers include [[WY]], [[RFP]], [[PCH]], [[WFG]], [[CFPZF]], [[IFSPF]]"Record softwood lumber prices amid an acute supply shortage appear unsustainable and may correct sharply from a level that's quadruple the 10-year average," Bloomberg Intelligence analyst Joshua Zaret wrote earlier this week.Bloomberg reported last week that sawmills may be catching up with North American homebuilding demand that had propelled a lumber's powerful rally.

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Lumber slumps by exchange limit; analyst says prices dropping sharply