Monday, May 04, 2020

Update: Framing Lumber Future Prices Mostly Unchanged Year-over-year

by Calculated Risk on 5/04/2020 11:27:00 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 24, 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 less than 1% 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.

Prices fell sharply due to COVID-19, however future prices have rebounded somewhat (Note: Construction is considered an essential activity is ongoing in many areas)