Lumber Hits 4-week High

Lumber futures traded near $565 per thousand board feet, falling toward its lowest level in three weeks, amid an ongoing trade war between Canada and the US. Canadian Prime Minister Carney is turning to the Europe Union after walking away from trade talks with US President Trump, which accounted for the largest portion of its trade. 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, mortgage rates are closing in on 7% for the first time since the beginning of 2025, further weighing on housing demand from prospective home buyers already wincing at record-high home prices and an uncertain economy.

Lumber increased to 584.50 USD/1000 board feet, the highest since August 2026. Over the past 4 weeks, Lumber gained 1.58%, and in the last 12 months, it decreased 0.34%.

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.