Activity in the lumber market was slow to start yesterday but momentum picked up during the day. The mills started selling, energizing traders that were lulled thinking the market was pausing and taking a break. There was belief that the higher prices would loosen up some extra mill offerings but buyers found continued tight supplies and fewer choices instead, prompting reaction. The mills found support at the higher numbers for the items they did sell, suggesting that market demand and pricing have a stronger base than may have been perceived or believed.
If supply is tighter than expected and demand in stronger than expected, then how are buyers responding? Increased inventory levels?
Pakira is working to convert reality (via data) into accurate realtime information for the buyers and sellers to perception matches reality. Thank you @william_giguere for identifying these discrepancies between perception and reality.