FX.co ★ Lumber Rises to 2-Month High

Lumber futures surged to approximately $620 per thousand board feet, reaching a near two-month peak. This increase was driven by expectations of supply tightening due to trade barriers and export constraints, coupled with heightened pre-winter purchasing activity. On September 29, the United States announced a 10% tariff on softwood lumber and associated wooden products, prompting traders to preemptively buy up near-term contracts in anticipation of potential market disruptions. Simultaneously, exporters are grappling with escalating trade disputes and the implementation of anti-dumping and countervailing duties in significant markets. These factors have compressed margins, led to some shipment delays, and diminished the incentive to operate mills at maximum capacity. Consequently, these supply-side challenges, together with seasonal inventory stocking before winter and steady construction demand, have tightened available spot supplies and focused purchasing efforts on nearby delivery contracts.