Lumber Prices Hover Near 3-Month Low

Lumber prices hovered around $580 per thousand board feet, remaining near a three-month low as reports of an interim trade deal between Canada and the US eased concerns over reduced supply.

Canada’s minister responsible for US trade relations said the country remains committed to negotiations.

Earlier, the US imposed tariffs on several Canadian lumber-related goods, although Canadian softwood lumber was excluded.

Still, US demand for the Canadian lumber declined 1.7% in the first half of the year, with the American share of trade slipping slightly.

Shipments to markets outside the US fell 3%.

Meanwhile, weakened homebuying activity continued to pressure demand.

Mortgage rates rose to their highest level in a year, according to Freddie Mac, while mortgage applications declined in the final weeks of July.

Construction spending on lumber-intensive single-family housing also fell 3.3% year-on-year in June.