Rally in lumber prices continuesPosted: September 23, 2010
In April of this year, lumber futures rocketed to a four-year high of $337. In less than three months, prices fell almost 50%. However, on Tuesday, unexpectedly high housing starts sent lumber futures soaring. Bloomberg reported:
“Lumber futures for November delivery rose the CME’s $10 daily limit, or 4.5 percent, to $232 per 1,000 board feet as of 9:12 a.m. in Chicago. That’s the highest price for a most-active contract since Sept. 14.”
The recent recovery in lumber prices keeps the uptrend from the early 2009 lows intact and suggests that the highs in April will give way sooner than later.