Shiver me timbers! Lumber prices hit 8-year high

CME lumber futures were ‘limit up’ today, gaining $10 to the highest since March 2005.

lumber futures weekly 10 years ending March 14, 2013

CME front month lumber futures

Lumber is a major export for a number of nations, especially Canada and today’s jump/breakout helps explain Canadian dollar strength. It’s also another sign of a resurgence in US housing.

Author: Adam Button

Adam Button is the managing editor of ForexLive™. He was previously the chief currency strategist at XForex and has also worked with Intermarket Strategy. Adam believes there's an edge in knowing every tidbit of news. He was formerly the head of the markets team at the Canadian Economic Press and is a graduate of Ryerson University. Adam lives in Montreal, follow him on Twitter: @FX_Button.

2 Comments

  1. You have to factor in not just the US Housing, but the rebuild of the NorthEast coast following Sandy most of the houses were wood framed and have been waiting for insurance & Govt funding while also waiting for the new codes & height restrictions to be worked out.. Much of the reconstruction has been on hold & will now begin hence lumber futures should remain strong on back of this..

  2. Agreed with cooments made by Keith. There are multiple factors influencing the cost of lumber, not the least of which include international demand for timber resources. As business continues to push forward the demand will increase and so will costs.

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