Lumber prices avoid a 7th consecutive drop with an increase at the end of the day as the meteoric rally of 250% of the raw material

  • Lumber prices avoided a seventh straight day of losses Wednesday after climbing into positive territory just before 3:30 p.m. ET.
  • Before the surge, the commodity fell 2.41% to trade at $ 1,237 per thousand board feet.
  • Despite recent weakness, prices are still up around 250% from the same time last year.
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A surge late in the day helped lumber prices stave off a seventh consecutive daily drop as the raw material’s dazzling 250% rebound over the past year kicked in.

Ahead of the rally, lumber futures were trading down 2.41% to $ 1,237 per thousand board feet on Wednesday. Despite the rebound, the commodity is still down about 20% from its May 7 record of $ 1,670.50 per thousand board feet.

As lumber prices fluctuate, local media continue to reveal the effects of historically high lumber prices on consumers.

The ABC outlet in Louisville reported the story of Kenny Marine, founder of Kentucky Hot Brown Pedalboards, who says his costs have more than doubled since last year.

“Something last year that cost me $ 12, $ 14 is costing me $ 30, $ 35, $ ​​60 in some cases, depending on the wood I buy, and that’s the killer there,” said Marine at ABC.

CBS affiliate KXAN in Williamson County, Texas said construction of a new county-run children’s advocacy center was on hold due to increased construction costs also caused by the soaring wood prices.

Republicans have used rising lumber prices and inflation issues as political tools to attack President Biden’s administration.

Representative Bob Gibbs, R-Ohio, who sits on the House Oversight Committee’s environment subcommittee, told FOX Business that the increase in lumber prices is “just one of many indicators that the Chairman Biden is failing American workers ”.

“Timber prices are an issue that has many causes, from economic complications from the coronavirus pandemic to difficult trade issues with Canada. Biden has shown he is unwilling or unable to tackle these hurdles “Gibbs told FOX Business.

The representative referred to a proposed tariff increase on imports of Canadian lumber. The US Department of Commerce recommended doubling tariffs on Canadian lumber to 18.32% from 8.99% just two weeks ago despite rising lumber prices.

However, it’s important to note that a similar tariff was initially imposed by the Trump administration before a ruling in favor of Canada by the World Trade Organization dropped the tariff to around 9% at the end of the year. Last year.

Read more: “If timber crumbles, stocks could be next”: award-winning portfolio manager who has tracked timber prices for years explains why futures hitting record $ 1,600 are a worrying sign – and shares what investors can do before the possible crash

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