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Lumber pricing nose diving

ferris1248ferris1248 Posts: 15,437 Moderator

(Bloomberg) -- Lumber futures posted their biggest-ever weekly loss, extending a tumble from all-time highs reached last month as sawmills ramp up output and buyers hold off on purchases.

Prices in Chicago fell 18% this week, the biggest decline for most-active futures in records going back to 1986. Lumber has has now dropped almost 40% from the record high reached on May 10.

https://finance.yahoo.com/news/lumber-prices-post-biggest-ever-210144368.html


"That which is hateful to you, do not do to your fellow. That is the whole of the law. The rest is commentary."

Rabbi Hillel (c20 BCE)

Replies

  • Mango ManMango Man Posts: 12,175 AG
    Good.


    America will never be destroyed from the outside. If we falter and lose our freedoms, it will be because we destroyed ourselves.
    Abraham Lincoln
  • ferris1248ferris1248 Posts: 15,437 Moderator
    Supply and demand still works. :)

    "That which is hateful to you, do not do to your fellow. That is the whole of the law. The rest is commentary."

    Rabbi Hillel (c20 BCE)

  • Jstubby2Jstubby2 Lat -90 Long +90 👍Posts: 719 Officer
    Good news I wonder how long it will take to trickle down to Lowes. I need a couple hundred fence panels. They owe me one any way. I ordered them a year ago on line pick up at store in Cypress  because they where $10cheaper & lighter than PT pine. They couldn't complete the order in cypress & offerd me the same price for PT pine. This was 2 months later, I was pissed told them to go pound sand... I still have all my notes & I'm a registered commercial cust now, $20 delivery fee no mater what. Would have been $80 for that order.
  • 4WARD4WARD Cross Creek,FLPosts: 2,572 Captain
    Bulk wholesale plywood was still at $79 a sheet up from $38, as of this past week. It’s gonna be a minute for retail.
    "I hate graveyards and old pawn shops
    For they always bring me tears
    I can't forgive the way they rob me
    Of my childhood souvenirs"... John Prine
  • Fly_FlingerFly_Flinger United StatesPosts: 134 Deckhand
    There was no shortage.
    A simple look at the google images taken in 2021 show millions of BF of cut and wrapped sitting in the mill yards.  Millions of trees stacked to be cut.  It was all a hoax to drive the prices up so they can come back down 50% and still be 50% higher than they were.
    I was in the building industry for 30 years.  Lumber prices were low.  The price hadn't increased substantially in that entire time.  2x4x8 stud, between 2-3$.  OSB would fluctuate depending on hurricanes and fires but was always between 10 and 15$.
    During this huge price increase the loggers didn't get paid anymore, it is the mills, the speculators and the big box retailers like HD, Lowes and Menards that are making windfall profits.
    Member formerly known as "Team Sabatage"  Lost during the great wipe out of 2019
  • ferris1248ferris1248 Posts: 15,437 Moderator
    There was no shortage.
    A simple look at the google images taken in 2021 show millions of BF of cut and wrapped sitting in the mill yards.  Millions of trees stacked to be cut.  It was all a hoax to drive the prices up so they can come back down 50% and still be 50% higher than they were.
    I was in the building industry for 30 years.  Lumber prices were low.  The price hadn't increased substantially in that entire time.  2x4x8 stud, between 2-3$.  OSB would fluctuate depending on hurricanes and fires but was always between 10 and 15$.
    During this huge price increase the loggers didn't get paid anymore, it is the mills, the speculators and the big box retailers like HD, Lowes and Menards that are making windfall profits.
    Just another conspiracy I reckon. 

    "That which is hateful to you, do not do to your fellow. That is the whole of the law. The rest is commentary."

    Rabbi Hillel (c20 BCE)

  • RedactionRedaction Posts: 1,776 Captain
    edited June 14 #8
    From last Thursday Home Depot in Jax
  • dave44dave44 Posts: 14,664 AG
    Redaction said:
    From last Thursday Home Depot in Jax
    Wow! I’ll try to get to the HD here and get a pic today.
  • ferris1248ferris1248 Posts: 15,437 Moderator
    $78.08 around Atlanta. 23/32 in. x 4 ft. x 8 ft. RTD Sheathing

    "That which is hateful to you, do not do to your fellow. That is the whole of the law. The rest is commentary."

    Rabbi Hillel (c20 BCE)

  • stc1993stc1993 Albany, GA Carrabelle, FLPosts: 8,947 Admiral
    GP across the main road from me are running wide open sawing trees.

    There's no shortage of trees.
  • dave44dave44 Posts: 14,664 AG
    Looks like it’s coming down a little bit.




  • mplspugmplspug Palmetto FloridaPosts: 14,848 AG
    edited June 14 #13
    I guess I'll wait to make my homemade regulation cornhole boards.  Starting a 2023 honey-do list now.
    Just dropping grenades in OT
  • treemanjohntreemanjohn Posts: 6,842 Admiral
    $78.08 around Atlanta. 23/32 in. x 4 ft. x 8 ft. RTD Sheathing
    I paid 70 last Tuesday 
    We’re like the piggy bank that everybody is robbing, and that ends
  • ferris1248ferris1248 Posts: 15,437 Moderator
    Never has been a shortage of trees. Just crazy people willing to pay higher and higher prices. 

    Supply and demand. As long as they pay the price the merchant will raise it.

    "That which is hateful to you, do not do to your fellow. That is the whole of the law. The rest is commentary."

    Rabbi Hillel (c20 BCE)

  • jetmech2jetmech2 Panhandle Posts: 1,454 Officer
    Shows what happens when you let the free market work its magic. Thank God government regulators/politicians didn't jump in to save us. (so far).
  • ferris1248ferris1248 Posts: 15,437 Moderator
    "During the housing bubble, the futures contract for random length lumber never traded above $500 per board feet. But by early May, lumber futures were trading hands for more than $1,600 per board feet. This surge was adding as much as $36,000 to the cost of a new home; on average, new homes sell for around $400,000."

    https://finance.yahoo.com/news/lumber-is-showing-us-the-future-morning-brief-100513368.html

    "That which is hateful to you, do not do to your fellow. That is the whole of the law. The rest is commentary."

    Rabbi Hillel (c20 BCE)

  • RedactionRedaction Posts: 1,776 Captain

    From what I understood from a video I saw a few weeks ago was that the Lumber companies had grown away from warehousing (stock piling lumber), there was enough of a demand to allow them to eliminate storing it which reduced cost. They were pretty much milling as needed. They were already having trouble keeping up with the demand due to the building boom (prices were on the rise before Covid). Then Covid hit and closed some mills for an extended period. This caused the "shortage" and the huge price increases…he said from the Lumber companies prospective they’re still producing what they were, but selling it for two to three times as much (if not more)…why increase production? Like Ferris said if people continue to pay for it cost will rise.  


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