Steady sales and tightening supplies drove framing lumber prices higher in many species. Traders balanced news of rising mortgage interest rates with growing positive sentiment among single-family homebuilders while awaiting the release of September housing starts on Friday.
The Random Lengths Framing Lumber Composite Price notched its third consecutive weekly increase, rising $8 to $411. That is the composite’s highest level since April.
Western S-P-F buyers padded light field inventories and procured occasional insurance loads amid a perception that supplies were less available. A few mills raised quotes after nearly every sale, and the highest levels were unproven. However, some of the strongest one-week gains of the year were registered in the narrow widths of #2&Btr.
The November futures contract traded mildly below last Friday’s settlement amid heavy volume on Thursday. Despite gains in cash, the board continued to carry a premium to most species.
In the South, upward price momentum eased as the week progressed. Sales moderated to a steady, but less fervent pace compared to recent weeks. Hurricane Milton’s aftermath generated a modest increase in demand for items needed to rebuild fences and make other repairs in the storm’s peripheral path.
Areas hit directly by the hurricane and the resulting catastrophic flooding remained in recovery mode, and traders noted that any impact on lumber demand was likely still months away. Uncertainty surrounding the coming presidential election gave buyers another reason to remain conservative. Trends in board markets mostly persisted.
Discounts outpaced price gains by a wide margin. Surpluses at mills and the desire to keep volumes turning generated lower prices. 1×10 excesses across several markets remained problematic.