The spot price of lumber, that of the September futures contract consisting of 110,000 nominal board feet of random length lumber, traded $1000 per thousand board feet. The 2020 Lumber Price Spike (And Why It Matters) 25 September 2020. As of 2020 November 25, Wednesday current price of Lumber is $600.500 (per board foot) and our data indicates that the commodity price has been stagnating for the past 1 year (or since its inception).. Lumber has been showing a declining tendency so we believe that similar market segments were mildly popular in the given time frame. Some have already been obliged to cancel contracts, returning deposits and explaining that the price of lumber has made building under agreed-upon terms now impossible. Lumber prices have more than doubled since spring. It will take elimination of the fires currently raging across the west to bring lumber prices down any sooner. All Rights Reserved, This is a BETA experience. In fact, it had looked like lumber prices were topping in the first week of September. The lumber futures curve suggests prices will fall hard by May 2021. Timber Prices 2020. In our graphic below we honed in on the daily trading price of lumber in the United States by comparing the prices of 1,000 board feet lumber, with figures sourced from Nasdaq market activity. Fires are limiting supplies of timber to lumber mills due to the forced closure of forestry ... [+] operations across the West; lumber prices have surged. When compared to April 2020 prices, October prices for softwood lumber were up 42 percent while plywood prices were up 81 percent. Prices for residential construction are still on the upswing, including a 1.8% climb in for prices paid on residential construction goods in September, according to the US Bureau of Labor Statistics. It means home building permits will likely decline in a big way in Autumn 2020. Based on our forecasts, a long-term increase is expected, the "LB" commodity price prognosis for Nov 19, 2025 is 744.434 USD per board foot. In a world where we’re all tightening our belts, this is not good news. I write about commodities through a three-decade lens of experience. Historically, Lumber reached an all time high of 1000 in September of 2020. We’re halfway through 2020 and what a wild ride it’s been for all Americans. Futures prices are predictive, and the price spread between nearby futures versus Spring 2021 futures is sending a clear message: lumber prices are coming down next Spring. © 2020 Forbes Media LLC. In our graphic below we honed in on the daily trading price of lumber in the United States by comparing the prices of 1,000 board feet lumber, with figures sourced from Nasdaq market activity. on October 16, 2020 • 10 Comments Framing lumber prices peaked above $950 per thousand board feet in mid-September, according to Random Lengths, and have been on a slow, downward trajectory since then. For new single-family homes, the average price has increased by a hefty $16,148. For every $1,000 increase in home prices, approximately 150,000 U.S. families get priced out. Panic induced by western wildfires, which have shut down logging operations and threatened supply to lumber mills in some areas, caused the sudden price spike in nearby futures, but futures contracts for later delivery next spring didn’t follow suit. This table shows weekly softwood lumber prices in North America for the current week, as well as a 4-week and 52 week averages. Since the end of August we’ve seen a small stabilization or down tick in lumber prices. Conversion Lumber Price Price; 1 board foot ≈ 2.359,74 cm³ Lumber Price Per 1 cm³ 0.01 USD That’s a big decline in demand virtually guaranteed to happen. Just $260 on April 1, this number had increased to $840 by August 21: a full 220% increase in price. An increase in domestic production or a lowering of Canadian tariffs could bring the prices down significantly, and the housing market is likely to respond with vigorous growth. Many builders, stuck with contracts based on pre-Spring estimates, find themselves stuck attempting to close the gap between projected prices and the new, much-higher quotes they receive from lumber mills. September 14, 2020 was a history making day in the lumber futures markets. Even as families across America express interest in moving to lower-density areas and building homes, an increase in the price of lumber across the board is making their dream inaccessible for many. For the week ending Oct. 16, prices stood above $750 per thousand board feet, down nearly $200 since their all-time high last month. There is one bright spot highlighted on this graphic though. Even as families across America express interest in moving to lower-density areas and building homes, an increase in the price of lumber across the board is making their dream inaccessible for many. The spot price of lumber, that of the September futures contract consisting of 110,000 … In the meantime, builders across the country continue to do the best they can with what they have - building quality homes in suburbs and rural areas to meet the needs of families seeking a less-populated haven. In simple terms, a dollar a foot for a rough cut piece of wood. High demand and continued low domestic production, combined with high Canadian tariffs caused by a stalemate in trade discussions, have continued to fuel the spike. Lumber prices have more than doubled since spring. Luckily for this industry, forestry jobs and services are considered essential, so many of us have been able to continue working. Some consumers are able to swallow the price increase, while other would-be homeowners count their pennies and wait for the day when lumber—the basic, all essential component of home construction—becomes affordable again. September 14, 2020 was a history making day in the lumber futures markets. Lumber - data, forecasts, historical chart - was last updated on November of 2020. express interest in moving to lower-density areas and building homes, find themselves stuck attempting to close the gap, High demand and continued low domestic production. But the fires came and those needing lumber now were forced to pay up; those able to delay their purchases appear to have sat out the panic. For a change in price of $16,148, we’re looking at a staggering 2.4 million families who would have been able to afford a new single-family home now forced to stay where they are or pursue other options. Lumber prices start to level off after skyrocketing this summer November 11, 2020 by Claire Stremple, KHNS - Haines Units of plywood stacked at a Haines hardware store. I am a commodities focused entrepreneur with over three decades of experience in physical and derivative energy and agricultural commodity markets. Looking ahead, lumber futures prices are well off of their September highs but they seemed to have settled at a level approximately 50 percent above price levels early in the year. Get the latest Lumber price (LBS) as well as the latest futures prices and other commodity market news at Nasdaq. Starting in early March, and continuing on through mid-June, prices plummeted and held at a relatively low mark. Yikes. The increase in lumber prices does more than price out families in need of a new home. Prices paid for goods used in residential construction continued their upward trend in August, increasing 0.9% (not seasonally adjusted) according to the latest Producer Price Index (PPI) report released by the Bureau of Labor Statistics. Early on in 2020, when the pandemic was just starting to gain global publicity, lumber prices slumped. EY & Citi On The Importance Of Resilience And Innovation, Impact 50: Investors Seeking Profit — And Pushing For Change, Michigan Economic Development Corporation BrandVoice, November 2020 loosening of tariff restriction on Canadian lumber imports. What’s happening to Lumber Prices? The increase in lumber prices was initially caused by supply chain problems and factory closures during the first COVID surge. Add to that a natural seasonal wintertime decline in lumber usage, plus the potential late November 2020 loosening of tariff restriction on Canadian lumber imports, and the ingredients are all in place for a major downside price correction in the lumber markets.