Lumber futures rebound after tariff start delayed

Lumber futures traded near $580 per thousand board feet, rebounding from a three-month low of $568 as the US temporarily delayed new duties on Canadian goods.

The US president signed a proclamation moving the start of the tariffs to Saturday, while Canada and the US negotiate an interim trade agreement.

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

However, pre-existing duties of around 35% continued to weigh on demand.

US demand for Canadian lumber fell 1.7% in the first half of the year, while its share of the US market declined slightly.

Meanwhile, a weak US housing market added pressure, with mortgage rates near one-year highs and housing starts falling 12.4% in July, driven by a sharp decline in lumber-intensive single-family construction to its lowest level since late 2022.