FX.co ★ Lumber Remains Subdued

Lumber futures have declined to approximately $560 per thousand board feet, reflecting a continued downward trend affected by weak demand and an oversupply in the market. While housing starts and building permits have not reached last year's levels and active listings have climbed, these factors limit the potential for sustained increases in consumption. Concurrently, sawmills maintained production levels that outpaced the demand in a declining cash market, resulting in excess supply at dealer yards. This surplus is causing distributors to offer discounts to clear their inventory. Additionally, earlier inventory buildups, initiated as buyers hedged against tariff-related risks, are now being sold off into a market with limited immediate demand, further exerting pressure on prices.