Lumber futures surge to 5½-month high on talk of additional sales to China, stronger quotes from some mills, March contract gains US$8.50 to close at US$276/mbf on Thursday
March 9, 2012
– Lumber futures closed sharply higher on Thursday, holding to gains made early in the trading session as news circulated of additional sales to China.
Traders also discussed stronger cash quotes from some mills, Dow Jones reported, leading futures prices to rebound from declines on Monday, Tuesday and Wednesday to a 5½-month high. Short-covering and technical buying helped support the gains until trading on the Chicago Mercantile Exchange closed for the day.
March futures closed up US$8.50 at $276 per thousand board ft. (mbf) while May gained 5.80 to settle at $278.20/mbf. Cash prices were quoted in a $280-$285 range.
The primary source of this article is Dow Jones, Chicago, on March 8, 2012 and daily settlement data for random length lumber futures from the Chicago Mercantile Exchange.