Monday, April 06, 2020

Update: Framing Lumber Future Prices Down 25% Year-over-year

by Calculated Risk on 4/06/2020 09:24:00 AM

Here is another monthly update on framing lumber prices.   Lumber prices declined sharply from the record highs in early 2018, and then increased until the COVID-19 crisis.

This graph shows two measures of lumber prices: 1) Framing Lumber from Random Lengths through Apr 3, 2020 (via NAHB), and 2) CME framing futures.

Lumcber PricesClick on graph for larger image in graph gallery.

Right now Random Lengths prices are unchanged from a year ago, and CME futures are down 25% year-over-year.

There is a seasonal pattern for lumber prices, and usually prices will increase in the Spring, and peak around May, and then bottom around October or November - although there is quite a bit of seasonal variability.

The trade war led to significant volatility in lumber prices in 2018.   Prices have fallen sharply due to COVID-19 (Note: Construction is considered an essential activity is ongoing in many areas)