Lumber futures drop to nine-month low below $550

Lumber futures fell below $550 per thousand board feet, marking a nine-month low, as higher borrowing costs continued to curb demand. The US housing market remains tight, with mortgage rates near their highest level in over a year and still showing no sign of easing after the Federal Reserve raised its key policy rate, which has weighed on demand from prospective homebuyers. 6% in August. US-Canada trade talks broke down, adding concern about lumber supply.

Ottawa had announced counter-tariffs of 25% on US lumber and 50% on plywood after US tariffs on several lumber-related goods. US forestry groups have long accused Canada of distorting the market, noting that 94% of Canadian forestland is publicly owned versus 58% privately owned in the US, which they say allows Canadian lumber to be sold at lower prices.