May lumber futures reach 13-month high of US$291/mbf as expectations of tight supplies continue to support two-week price run
May 4, 2012
– May lumber futures reached a 13-month high on Thursday at $291/mbf, according to a report by Dow Jones.
Futures have continued to gain sharply since last Monday's explosion and fire at Sinclar Group Forest Products' Lakeland Mills Ltd. sawmill, which has led traders to expect tighter supplies. The latest run in May futures has continued into this week.
On Thursday, May was up $4.10 on the day at $291/mbf, July gained $3 to settle at $287.50/mbf and September closed $2.90 higher at $293.50/mbf. Cash prices were quoted from $297-302/mbf.
Wednesday saw a brief pause as traders took profits and assessed demand and follow-through business. The May contract slipped $0.60 from Tuesday to close at $286.90/mbf, but July closed up $1.10 at $284.50/mbf. Cash prices were quoted in a $295-300/mbf range.
The primary sources of this article are Dow Jones on May 2 and 3, 2012, and daily settlement prices for random lengths lumber futures from the Chicago Mercantile Exchange.