In this file:
· Labor Shortage, Wet Weather Cause Lumber Prices to Surge 359%
· Lumber Prices Break New Records, Adding Heat to Home Prices
Labor Shortage, Wet Weather Cause Lumber Prices to Surge 359%
By Tyne Morgan, AgWeb
May 3, 2021
As shoppers face sticker shock when buying lumber, prices continue to climb. Lumber prices are up 359% since last year at this time, with a 69% increase taking place since the start of 2021. But the higher prices aren’t trickling down to producers.
“Unfortunately, not; if you look at it from the stumpage and delivery, prices are very hyper local,” says Jonathan Smith, executive director of TimberMart-South.
TimberMart-South is a timber price reporting service that covers pricing from eastern Texas to the Southeast.
“If you look at it from a South-wide level, your stumpage prices are up about 2.5% year over year,” Smith adds.
Smith says with a hyperlocal market...
Lumber Prices Break New Records, Adding Heat to Home Prices
Sawmill owners poised to reap big profits, while home buyers, renters bear brunt of rising wood costs
By Ryan Dezember, The Wall Street Journal (WSJ)
May 3, 2021
The frenzied climb in lumber prices is generating superlative profits for sawmill owners. Home buyers, renters and do-it-yourselfers are footing the bill.
Wood prices pushed further into record territory, a sign that Weyerhaeuser Co. , Canfor Corp. and other sawmill owners are in line for even fatter profits than the record earnings they have been reporting for the first three months of 2021.
These companies have emerged as the biggest beneficiaries of the wood boom. They are feasting on a glut of cheap pine trees in the U.S. South while their finished products like lumber and plywood are flying off hardware-store shelves and being bid up by home builders.
Lumber futures delivery later this month ended Monday at $1,575.60 per thousand board feet, a record and more than four times the typical price this time of year. Futures rose by the daily maximum allowed by the Chicago Mercantile Exchange during nine of April’s 21 trading sessions.
Exchange rules remove daily trading thresholds during the month in which a futures contract expires, which means May futures have no limit to how high they may rise before the 15th, when the bets are settled. On Monday, May futures shot up $75.60, the most ever in a single day.
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