Lumber prices continue to rise: Fifth weekly gain despite southern pine lag

Access a snippet of our weekly lumber commentary, which features our expert analysis on the fifth consecutive weekly price gain.

Sales picked up in many framing lumber species, especially in the West. A lack of supplies in Canadian S-P-F led to buyers switching to other species. As a result, in the middle of the week markets like the Inland and Coast saw more demand and price gains than have been evident for several weeks.

The Random Lengths Framing Lumber Composite Price notched its fifth consecutive weekly gain and hit $430, its high so far this year.

A mild increase in demand for Western S-P-F collided with the realization from buyers that lumber supplies were significantly constrained in spots. Mills sold their few prompt offerings and raised quotes for extended shipments. Most order files extended into mid-November. Rising mortgage rates and next week’s U.S. election were distractions but had little impact on the market.

Gains in the cash market were supported by strong upward movement in lumber futures through Wednesday. The November and January contracts traded in the green much of the week, with double-digit gains posted across all contracts on Wednesday.

Despite an overall rising market, Southern Pine was a laggard. Supply-driven strength that fueled the recent run in the South faded or stalled as mill order files dwindled and prompt loads surfaced more frequently. Demand weakened as a growing number of buyers throughout the distribution pipeline moved to the sidelines.

Some mills continued to capture premiums, noting that middle widths in particular were competitively priced compared to Western S-P-F. Buyers confined new orders to loads that could ship within one week.

The Coast market rolled into Halloween on a positive note as tightness in green Fir and S-P-F resulted in buyers subbing in dry Fir. “We’re driving the bus right now,” said one mill salesman.

Interested in learning more about the Random Lengths weekly report? Find out how to subscribe to gain access to the full piece, including data visualizations and commodity-specific analysis.

What to read next
Explore Fastmarkets' new pallet pricing series, bringing clarity to softwood GMA Grade A markets for manufacturers, traders and related industries.
You can read a snippet of our weekly lumber report, featuring insights into the trends behind the continued increase in prices.
Watch this interview with Fastmarkets' in-house expert, Jennifer Coskren, director of wood products and timber, to learn more about the state of the US housing market and a look ahead to 2025.
The postponement will now be voted on by both the Parliament and the Council.
Read a snippet of our weekly lumber report, analyzing how the US election and interest rate cuts have impacted prices.
Fastmarkets/RISI economist Dustin Jalbert noted that temporary downtime and quiet, unannounced cutbacks contributed to reduced capacity in 2024.