Cash markets were much busier this week as buyers were far more inclined to commit to a decent order number. While the volumes were not huge, SPF mills did report some need-to-move items were either cleared up or close to it. Spruce and dry fir markets were busier than yellow pine and green fir markets. WSPF #2&btr 2x4s are quoted unchanged in a range of $320 per Mbf wholesale to $330 mill. Quotes at this time last year were off of record highs, but still trading far higher in a range of $630–$640 per Mbf.
With building conditions improving across the nations, especially in the weather-beaten areas of the Northeast and South Central, lumber demand is improving. At the same time, a steady flow of curtailment announcements is pulling out current and future supply helping the market to finally overcome the persistent oversupply that has challenged this market this year. Expect buyers to digest recent purchases over the short-term, but further long-term needs will combine with decreasing supply. Strong prices remain in the forecast.
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