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Lumber Rises to Three-Month High on Demand Before September Contract Ends
Lumber prices rose to a three-month high as traders shifted positions to November contracts from September futures that expire next week.
“People who are short are now buying back their positions,” said Jamie Greenough, a broker at Global Securities Corp. in Vancouver.
On the Chicago Mercantile Exchange, lumber futures for November delivery jumped by the maximum of $10, or 4.6 percent, to settle at $226.60 per 1,000 board feet at 1:15 p.m., the highest level for a most-active contract since June 8.
Lumber futures for September delivery, expiring Sept. 15, rose $2.60, or 1.2 percent to $222.60. Yesterday, both contracts rose by the exchange limit.
The most-active contract has tumbled 33 percent from this year’s high of $336.80 on April 21 amid slumping U.S. home prices.
“Demand is incredibly sluggish” because of the distressed housing market, said Paul Quinn, a Vancouver-based analyst at the Royal Bank of Canada Capital Markets.
To contact the reporters on this story: Leslie Patton in Chicago at lpatton5@bloomberg.net; Tony Dreibus in Chicago at tdreibus@bloomberg.net.
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