July lumber futures contract drops to 10-month low of US$305.70/mbf on May 22; price has fallen US$103.30/mbf since mid-March peak, a decline of more than 25%
May 23, 2013
(Industry Intelligence Inc.)
– Increased North American lumber production, slowing export sales and weak cash prices continued to exert downward pressure on lumber futures prices on Wednesday, March 22, pushing the July contract down US$5.90 (1.9%) to $305.70 per thousand board ft. (mbf), its lowest level since July 19, according to a commentary by Dow Jones.
Since peaking in mid-March, July futures prices have plunged $103.30/mbf, a drop of more than 25%.
On March 22, futures for delivery in September and November also hit new contract lows. September was down $3.90 (1.3%) on the day, settling at US$308.50/mbf at the end of the Chicago Mercantile Exchange trading session. November closed down $3.90 at $307.10/mbf
Cash prices were quoted in a $325 to $330/mbf, range, but traders noted weaker tones, reported Dow Jones.
The primary sources of this article are Dow Jones, Chicago, on May 22, 2013 and daily settlement data for random lengths lumber futures.