Lumber Drops to Lowest Level in 13 Months
Lumber futures fell below $510 per thousand board feet, reaching its lowest level since September 2025, as expectations grew that tariffs on Canadian lumber could be reduced. A Democratic sweep of the US Congress raised prospects for support to repeal the duties, while the Trump administration has yet to secure a trade agreement with Canada amid ongoing negotiations. The removal of tariffs could increase US lumber supply and place further downward pressure on prices. The US Commerce Department previously lowered antidumping and countervailing duties on Canadian softwood to 24.75% from 35.16%, although a separate 10% tariff keeps the total rate elevated at 34.75%. Meanwhile, prolonged trade barriers continue to weigh on the already weak US housing market, while mill closures across North America could tighten supply. Housing demand remains constrained by mortgage rates above 7% and high construction costs, although rates have declined for a third consecutive week.
Lumber futures fell below $510 per thousand board feet, reaching its lowest level since September 2025, as expectations grew that tariffs on Canadian lumber could be reduced. A Democratic sweep of the US Congress raised prospects for support to repeal the duties, while the Trump administration has yet to secure a trade agreement with Canada amid ongoing negotiations. The removal of tariffs could increase US lumber supply and place further downward pressure on prices. The US Commerce Department previously lowered antidumping and countervailing duties on Canadian softwood to 24.75% from 35.16%, although a separate 10% tariff keeps the total rate elevated at 34.75%.
Meanwhile, prolonged trade barriers continue to weigh on the already weak US housing market, while mill closures across North America could tighten supply. Housing demand remains constrained by mortgage rates above 7% and high construction costs, although rates have declined for a third consecutive week.