Lumber Rebounds From Three-Month Low

Lumber futures traded near $580 per thousand board feet, rebounding from a three-month low of $568 as the US temporarily delayed new duties on Canadian goods. The US president signed a proclamation moving the start of the tariffs to Saturday, while Canada and the US negotiate an interim trade agreement. Earlier, the US imposed tariffs on several Canadian lumber-related products, while Canadian softwood lumber was excluded. However, pre-existing duties of around 35% continued to weigh on demand. US demand for Canadian lumber fell 1.7% in the first half of the year, while its share of the US market declined slightly. Meanwhile, a weak US housing market added pressure, with mortgage rates near one-year highs and housing starts falling 12.4% in July, driven by a sharp decline in lumber-intensive single-family construction to its lowest level since late 2022.

Lumber prices fell below $580 per thousand board feet as tariff uncertainty continued to weigh on demand. Canada’s minister responsible for US trade relations said the country remains committed to negotiations, although reports indicated Canadian officials were dissatisfied with the latest US offer and continued to push for zero tariffs on softwood lumber. Earlier, the US imposed tariffs on several Canadian lumber-related products, while Canadian softwood lumber was excluded. Still, US demand for Canadian lumber fell 1.7% in the first half of the year, while its share of the US market declined slightly. Shipments to markets outside the US also fell 3%. Meanwhile, mortgage rates rose to their highest level in a year, according to Freddie Mac, while mortgage applications declined in the final weeks of July. Construction spending on lumber-intensive single-family housing fell 3.3% year-on-year in June, adding to demand concerns.

Lumber prices hovered around $580 per thousand board feet, remaining near a three-month low as reports of an interim trade deal between Canada and the US eased concerns over reduced supply. Canada’s minister responsible for US trade relations said the country remains committed to negotiations. Earlier, the US imposed tariffs on several Canadian lumber-related goods, although Canadian softwood lumber was excluded. Still, US demand for the Canadian lumber declined 1.7% in the first half of the year, with the American share of trade slipping slightly. Shipments to markets outside the US fell 3%. Meanwhile, weakened homebuying activity continued to pressure demand. Mortgage rates rose to their highest level in a year, according to Freddie Mac, while mortgage applications declined in the final weeks of July. Construction spending on lumber-intensive single-family housing also fell 3.3% year-on-year in June.