Lumber Drops to Nine-Month Low, Extending Retreat From Record

Wood

Chicago futures drop 4.4% to lowest since late October.

August 30, 2021
Marcy Nicholson - Bloomberg

Lumber futures slid to the lowest in more than nine months after sawmills ramped up production and demand from builders stabilized.

September futures in Chicago fell as much as 4.4% to $482.90 per thousand board feet, the lowest for a most-active contract since Oct. 30. Prices have dropped more than 70% from the record high reached just three months ago.

The tumble marks a stark turnaround for the common building material after strong U.S. construction demand during the pandemic spurred a surge in orders for lumber, causing prices to more than quadruple to their May peak and fueling inflation concerns. Sawmills have since increased output, and a shortage of other building supplies such as siding and windows has slowed the pace of construction, said Brian Leonard, an analyst with RCM Alternatives.



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