Lumber Near Two-Week High

Lumber futures traded around $575 per thousand board feet, near its highest level in two weeks, as retaliatory tariffs from Canada on US goods took effect, weighing down demand. However, Prime Minister Carney stated he would "do whatever it takes" to support affected sectors. Ottawa had announced counter-tariffs of 25% on US lumber and 50% on Plywood following US tariffs on several lumber-related goods. US forestry groups have long accused Canada of distorting the market, as 94% of Canadian forestland is publicly owned compared to 58% privately owned in the US, allowing Canadian lumber to be sold at a lower price. Meanwhile, US housing remains subdued, as fall is usually a time for renovations, however, elevated prices weighs on the sector. Lumber-intensive single-family construction spending fell 3.2% in July, while elevated mortgage rates continue to weigh on homeownership.

Lumber decreased to 560.00 USD/1000 board feet, the lowest since April 2026. Over the past 4 weeks, Lumber lost 12.07%, and in the last 12 months, it decreased 0.18%.

Lumber futures fell below $570 per thousand board feet, nearing a five-month low as the escalating Canada-US trade war weighed on demand. Canada announced counter-tariffs on several US goods, including lumber, stating that the measures were intended to protect Canadian industries. Prime Minister Carney said he remained open to negotiations but would not accept a subordinate position to the US. The dispute is weighing on the forest sector of both countries, with lumber prices rising sharply following the tariff announcement. More than 20 sawmills across British Colombia have closed since 2023, while seasonal renovation activity in the US is also facing pressure from elevated prices. Meanwhile, persistently high inflation has reduced homeownership affordability and kept mortgage rates elevated, while construction spending remains subdued. US housing starts fell 12.4% in July, driven by a sharp decline in lumber-intensive single-family construction, further weakening demand.