Lumber futures fell toward $580 per thousand board feet, a one-month low, as high interest rates and weakening home construction eroded demand faster than sawmills could cut production. The downturn has been driven by a 14.2% plunge in single-family housing starts and a 5.4% drop in building permits, signaling an abrupt cooling in typical spring building activity.
On the supply side, ongoing sawmill closures have removed 1.3 billion board feet of capacity, and US duties on Canadian lumber imports remain at 45%. Even so, these constraints have not been enough to support prices in the face of a sharp pullback in buyers. The recent rise in mortgage rates to 6.46% has curbed buyer traffic and left homebuilders with a 2.4% increase in unsold inventory, prompting immediate price reductions to clear stock.
Adding further pressure, the April 2 announcement of C$2.1 billion in Canadian forestry subsidies has reinforced expectations of greater future wood availability, offsetting concerns about potential shipping disruptions through the Strait of Hormuz.
