FX.co ★ Lumber Eases Past $610

Lumber futures have slipped below $610 per thousand board feet, retreating from the two-month peak of $626 recorded on June 13th. This decline is attributed to an increase in supply coinciding with a slowdown in demand. The recent dip in prices marks a temporary surge in supply, as sawmills and wholesalers replenished their early-season stock while builders postponed further purchases after an initial round of buying. The decrease in demand can be linked to persistently high mortgage rates that continue to dampen new home construction and remodeling activities. Consequently, treaters and end-users have reduced their orders. While longer-term projections indicate a potential upturn in the third quarter, driven by renewed tariff pressures and an anticipated recovery in the housing market, the current market correction is primarily due to a supply surge, the seasonal lull, and construction spending constrained by high interest rates.