Lumber futures moved in a roller coaster as traders tried to establish if a drawback in wood prices had eliminated market froth, according to CNBC. July deliveries for Lumber fell 5% to $1,201 per thousand board feet on Wednesday but rallied 5% by the afternoon.
Prices hit the lowest, then climaxed the maximum percentage limits allowed by the Chicago Mercantile Exchange where trading occurs.
Prices of Lumber are about 37% up in 2021 despite falling daily since a record of $1,711 per thousand board feet on May 10.
Robin Cross, a commodity broker, attributed the drawback to people that bought high-end inventory and are skeptical to add more.
Many stuck-at-home homeowners and homebuilders have also accumulated pine, with sawmills failing to meet demand.
Traders were aggressively bidding up prices in March.
Slowing homebuilder’s production is also blamed on rising Lumber costs.
Lumber futures are currently gaining. LBS1! :CME is up 4.98%
