RE:RE:Lumber producers slashing output as demand falters amid COVILumber futures were down $20 this morning. That is nothing in the scheme of things and
certainly doesn't suggest a trend. After the unexpected runup, it is normal to have a correction
due to profit taking and is no way a reflection of where this market is going.
One of the oddities from the Covid economy is strong lumber prices and as long as Covid
remains as big a factor in North American, I would expect that they stay strong. Earnings will
drive stock prices and the high lumber prices haven't even shown up yet in the earnings. Lumber
producers are up in anticipation, and as the year progresses, I think will work their way higher
as the true earnings will hit the bottom line and investors see how unbelievably profitable these
companies will be.
High demand and constrained supply combined with historical low interest rates will continue
to be the drivers for some time to come IMO.