Lumber futures eased to around $860 per 1,000 feet at the start of February but remained historically high for what is typically a winter lull. Builder-friendly winter weather and Covid-19 lockdowns continued to stimulate demand for home renovations. Also, housing starts in the US rose at the fastest rate since 2006 in December amid record-low borrowing rates and an exodus from major cities. On the supply front, mills were not able to ramp up fast enough to keep available supplies from drawing down. Meantime, higher homebuilding costs forced many buyers to purchase only their immediate needs. Looking ahead, supply is expected to keep responding to attractive price movements and be enough for upcoming springs needs despite some fears of a shortage.
Historically, Lumber reached an all time high of 1000 in September of 2020. Lumber - data, forecasts, historical chart - was last updated on February of 2021.
Lumber is expected to trade at 831.21 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 684.05 in 12 months time.