Chicago lumber futures rose towards $600 per thousand board feet, on expectations of lower supply due to wildfires in western Canada. British Columbia, Canada’s biggest exporter of lumber to the US, declared a state of emergency for at least two weeks and Canfor Corporation said it is curtailing production capacity as the fires disrupted transportations and supply chains. Still, the price of lumber is more than 60% below an all-time high of almost $1,700 hit on May 7th, after demand slowed and mill production rebounded as the labor-related issues from COVID dissipate.
Historically, Lumber reached an all time high of 1711.20 in May of 2021. Lumber - data, forecasts, historical chart - was last updated on July of 2021.
Lumber is expected to trade at 811.71 USD/1000 board feet by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 1139.19 in 12 months time.