U.S. random length lumber futures prices appear to be confirming the current pullback will continue, and could become a correction (10% or more reversal).
At a glance, technical analysis suggests the first price level to watch is the $425/mbf area. If that doesn’t hold, then next stop likely around $400/mbf, with a possibility of even seeing $385/mbf in the near term.
But as the saying goes, you can’t eat crystal glass. Technical analysis no crystal ball. Anything can happen, but in our opinion it increasingly looks like a near-term correction in the U.S. random length lumber market could be in the making.