Monday, June 29, 2020

Update: Framing Lumber Future Prices Up Year-over-year

by Calculated Risk on 6/29/2020 01:32:00 PM

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 June 26, 2020 (via NAHB), and 2) CME framing futures.

Lumcber PricesClick on graph for larger image in graph gallery.

Right now Random Lengths prices are up 36% from a year ago, and CME futures are up 14% 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 prices have bounced back (Note: Construction was considered an essential activity in many areas, so construction didn't decline as much as some other sectors).