GREY:ETRFF - Post by User
Post by
MadisonReporteron Nov 18, 2011 2:25pm
377 Views
Post# 19249438
lumber prices
lumber prices
Benchmark WSPF KD 2x4 #2&Btr prices soared $22 this week on strong demand out of the US. Print this week is US$240 mfbm, up from $218 last week.
Lumber inventories across the supply chain throughout North America are so depleted that ordering in the run-up to US Thanksgiving long weekend had to be made at the mills. Reloads, stocking wholesalers and even retailers are running so lean that EVERYONE had to order from the mills this week.
Sawmill order files are out to Dec 3 or Dec 16 depending on the region. That means the mills will be running until the Christmas break AND they are sold out. Lumber prices will not drop before the end of this year. They may rise further between now and December.
Seasonal closures in Quebec are usually two weeks and in the west at least one week. Essentially as of right now sawmills are doing good business to the end of this year.
Douglas fir green 2x4's are up $10, Eastern spruce 2x4 is up $5. These commodities generally lag Western spruce, so there will probably be another uptick next week.
Immediately upon closing of the November contract, lumber futures shot up limit yesterday ($10) for January and are currently up another $5. That puts futures at $241, very close to cash prices.
It is not yet time for curtailed mills to come back online. Production discipline is still needed for lumber prices to rise further and bring increased profitability.
More next week, as it happens.
Keta Kosman
Publisher
Madison's Lumber Reporter
www.madisonsreport.com