Lumber Futures’ Rout Deepens to 27%, Hinting at Rally’s End
- Lumber for July delivery sinks for a seventh straight session
- Futures fall while U.S. framing lumber sees record high prices
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While builders are still paying record-high cash prices for lumber, the futures market is signaling that the historic rally could be coming to a close.
The lumber contract for July delivery fell $63 on Tuesday, the maximum permitted by the Chicago Mercantile Exchange, with the price sinking to $1,264 per 1,000 board feet. That’s the seventh straight session of falling prices for the futures contract, marking the longest streak of declines since September. Lumber’s most-active futures contract is down 27% from its May 10 peak of $1,733.50, a level more than four times higher than prices a year ago.