Buyers Waiting for Lower U.S. Lumber Prices Risk Paying More

Of course, no one knows where the market will go next. But traders participating in the CME lumber futures market are betting on higher prices in the months ahead.

As we noted a few weeks ago, the market for new home construction looks set for continued strength. This view is further reflected by the huge growth in new home orders reported by luxury homebuilder Toll Brothers last week.

Although February saw a surge in lumber prices to levels not seen since 2013, traders are pricing in even higher prices. At the time of writing this, the March 2017 contract was trading at $371.80, while May was trading at $384.00, and July at $390.00.

Anything can happen and brief pullbacks are to be expected. Waiting to time them, however, risks paying higher prices according to the futures market.

Like this post? Have a problem with it? Have other ideas? Please leave a comment below.

TimberCheck™ helps wood product businesses increase profitability, reduce risk and build networks of trust. Sign up for free. Join us on LinkedInFacebook and Twitter.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s