Lumber Extends Rally on Supply, ‘Unprecedented’ Transport Snags
- Canfor Corp. to cut 150 million board feet of production
- Lumber futures have already gained about 34% this month
Cut boards and lumber are stacked at a sawmill in Sooke, British Columbia in October 2021.
Photographer: James MacDonald/BloombergThis article is for subscribers only.
Lumber futures rose to the highest in a month as some of Canada’s biggest producers reduce output and transportation snags disrupt shipments to customers.
March futures rose by the exchange limit of $45 Wednesday to $1,336 per $1,000 board feet in Chicago before paring gains. The surge comes as firms such as Canfor Corp. announce supply cuts in British Columbia, while port congestion and a lack of rail cars and trucks make it harder for Canadian companies to get timber to buyers.