Widman's Market Direction

Widman’s Market Direction

The disruptive protests that were blocking major portions of Canada’s two main rail carriers have improved, allowing traffic to begin to return to normal. However, the ramp up to getting cars to back ordered locations and laid off staff into position is going to take time. Whereas the chaos generated by the rapidly spreading Covid 19 virus appears to be unabated and a mounting challenge to predict what the impact on global economics and lumber industry will be long-term. With central banks in Canada and the U.S. both dropping their respective key lending rates a half-basis point, mortgage opportunities are certainly improved. While the long-term economic factors for this year are potentially murkier, housing, and by extrapolation lumber, demand remains strong. With supply constraints unchanged we expect this market to remain resilient and stronger through to the beginning of the next quarter. However, we caution our readers that unmitigated recessional factors could increase depending on the course of the Covid 19 development and management in the coming months.