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Lumber Buyers ‘Pay Up or Run Out’ Amid U.S. Homebuilding Surge

  • CME lumber futures hit record high, physical prices following
  • Hand-to-mouth buying seen fueling more price volatility
A contractor stands on lumber scaffolding while working on a home under construction in Louisville, Kentucky.

A contractor stands on lumber scaffolding while working on a home under construction in Louisville, Kentucky.

Photographer: Luke Sharrett/Bloomberg
Updated on

With U.S. lumber prices at fresh record highs, construction companies and wood wholesalers are buying just enough to get by, threatening to make price swings even bigger.

Lumber futures in Chicago reached a record $855.10 per 1,000 board feet on Tuesday, having surged more than 30% since Jan. 12. This price surge during what is typically a winter lull has surprised the industry, raising homebuilding costs and forcing many buyers to purchase only their immediate needs. That may filter through to housing prices, while also boosting earnings at lumber companies such as Weyerhaeuser Co. and West Fraser Timber Co.