(MENAFN- Baystreet.ca) Lumber Prices Fall To Seven Month Low As Housing Softens
Lumber prices have declined to their lowest level since last November as housing markets in
Canada and the U.S. begin to slowdown amid rising interest rates.
Lumber futures fell as low as $604.50 U.S. per 1,000 board feet in Chicago trading,
representing a 46% decline so far this year.
Lumber's price decline is a stark reversal from the all-time highs set in 2021 during a pandemic-
fueled housing boom.
The consensus view of analysts who track commodities is for lumber prices to fall as low as
$400 U.S. per 1,000 board feet within the next two months before producers' curb production to
remove excess supply, according to Refinitiv data.
Yesterday (June 1), the Bank of Canada raised interest rates by 50 basis points for a second
straight time, bringing its trendsetting overnight rate to 1.5%.
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