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Framing lumber prices continued to climb, and traders tried to assess a number of factors that might affect the market moving forward.
The US presidential election injected a dose of optimism among some traders. They also weighed the Federal Reserve’s decision to cut the benchmark interest rate 25 basis points, while Freddie Mac noted mortgage rates were still rising.
The Random Lengths Framing Lumber Composite Price gained for the sixth straight week, climbing $11 to $441. That is its highest level since August 2023.
A fading Southern Pine market was once again an exception to an otherwise upward trend in most framing lumber species. While supply-driven strength persisted in Canada and the western US, downward price momentum mounted in the South.
A growing number of truss plants in the Upper Midwest and Northeast substituted Southern Pine for Spruce to take advantage of the widening price spread between species. Many traders noted that this week’s presidential election results provide more clarity going forward. Most sales were limited to mill offerings that could ship within one week.
Western S-P-F prices continued to climb by double-digit increments in most cases. Buyers with immediate needs padded thin inventories with available supplies.
Tightness in many items led mills to successfully raise quotes and extend modest order files out to the end of the month. Lumber futures seesawed through the week but continued to carry a modest premium to the cash market.
Traders noted that current futures levels were profitable for producers and speculated additional mill participation could become a factor. In the Coast region, sales activity soared following Tuesday’s election results with most mills reporting that the phones were ringing off the hook.
Many traders anticipated an economic boost to follow the return of the Trump administration to Washington, and sought to secure loads at current prices.
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