RE:Wood demand strong for the next decadeI agree that demand should remain strong, to a point with respect to prices that can be affored.
I also think that we need to offset some of this against expected capacity increases are coming on line. In a brokerage report that I read this week, it was noted that 1,800 million board feet will have been added in 2021 and 1,598 million board feet wil be added in 2022.
This added capacity will help meet demand but what remains to be seen is how much price destruction we can expect to see. The consensus points to a higher bottom for lumber, but also a weakening to a lower high.
I am confident in stronger value for longer for IFP, CFP and WFG, but am unwilling to chase after current prices. I will wait for more drops in the price of lumber before reentering positions.