Market Update for August 25, 2021 – Is a typical slump in September with a bottom towards mid-October ahead?

If history is any guide, the homebuilding season typically picks up into year-end, however not before a typical slump in September with a bottom towards mid-October. This traditional seasonal trade, where lumber prices bottom in the fall before rallying in anticipation of the upcoming building season, appears to be a probable path forward. We see prices remaining flat to weaker, but with far less erosion than seen through the summer months.