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I just went to buy some lumber. The price has come down about 40% in two weeks. Yes, lumber is crashing even though everything else is going through the roof. Demand is starting to evaporate. Buckle up.

Lumber prices have been halved since the Federal Reserve embarked on its most aggressive interest rate tightening campaign in decades as the pandemic boom in housing slows. Lumber contracts trading on the CME crashed to $653 per thousand board feet, down 51% from a high in late February of $1,336. The decline in wood prices occurred about two weeks before the Fed began hiking interest rates in mid-March. The Fed is expected to continue raising rates this summer. Interest rate probabilities show the Fed could hike by 50bps at three of the next FOMC meetings to suppress consumption and get...

•The price of lumber futures has fallen to its lowest level since November 2020, erasing this year's dizzying gains.•An investment chief says the price of the commodity could reach its pre-pandemic level in the next 12 months.•He added, however, that the price trends will vary by geography. Prices for lumber futures have descended to levels not seen since November 2020, erasing this year's dizzying gains amid a cooling demand for the red-hot commodity. Lumber prices fell for the 10th consecutive week to trade at $536 per thousand board feet - 67% lower from their May 7 peak of $1,670 per...

Lumber futures on Chicago Mercantile Exchange plunged more than 40% in June, suffering the worst ever monthly decline on record dating back to 1978. Prices are down 18% in 2021 and recorded the first negative first half since 2015. Lumber peaked in late April/early May at around $1,711 per thousand board feet, and as of Thursday morning, prices are down more than 4% to $684. It appears the great lumber bubble of 2021 has encountered a classic commodity blowoff top, down -60% from the highs.Readers may recall we’ve been closely following the lumber bubble: The latest drop in prices “suggests...

Lumber futures on Chicago Mercantile Exchange have been nearly halved in a matter of a month to $879 per thousand board feet from the all-time high in May of around $1,711. The reason for the latest downdraft is because sawmills are boosting output and domestic production is increasing, catching up with demand. “High prevailing prices have already encouraged lumber mills to boost output, and we anticipate that domestic production will rise even further as labor shortages in the trucking and forestry sector dissipate,” Samuel Burman, assistant commodities economist at Capital Economics. Lumber, which is typically transported on one of three...