Lumber Near September-2024 Lows

2025-11-18 15:33 By Felipe Alarcon 1 min. read

Lumber futures traded around $540 per thousand board feet, near September 2024 lows amid a significant oversupply in the market coupled with persistent weakness in demand.

The market is facing a substantial physical overhang as housing starts and building permits remain below year-ago levels, curbing consumption.

Sawmills maintained output too high for a weakening cash market, leaving dealer yards with bloated stocks.

This oversupply was magnified by speculative front-loading of inventories by buyers earlier in the year to hedge against tariff risks, and that stock is now being liquidated at a discount into a soft market.

This situation, combined with high mortgage rates and the seasonal slowdown in construction, has forced major producers to announce production cuts and mill closures to help rebalance the market.



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