11/19/2021
Here's the latest on the wholesale lumber front as of 11.19.21:
The framing lumber market took an unexpected turn upward for many traders, with a troubled Western S-P-F market serving as the primary catalyst. Many prices firmed and reversed course as the week progressed. Steep double-digit gains in Western S-P-F set the pace, and the Random Lengths Framing Lumber Composite Price jumped $15, after declining modestly the previous two weeks.
An historic storm over the prior weekend produced widespread flooding, mudslides, and washouts in southern British Columbia. Blocked roads and rail lines thwarted any traffic into Vancouver and south into the U.S. via the I-5 corridor. Traders sought answers to how long routes would be closed. Sources reported that limited passage could be restored in days or weeks, although full recovery from the damage could take months. The storm added to a list of issues for the Western Canadian industry, including an increase in duties on lumber shipments to the U.S. late this month, increased log costs, and harvest cutbacks. The blockage of routes to Vancouver added to an already troubled export sector struggling with acute congestion at the port. Blockage of Canadian shipments through the I-5 corridor helped lift demand in the recently moribund green and dry Coast markets. Random Lengths Weekly Report and sales picked up notably, and many prices firmed and then advanced.
Meanwhile, a downward trend prevailed in Southern Pine, although mixed signals were evident as well. The long holiday weekend in the U.S. next week, a perception of seasonal slowness, and yearend inventory management contributed to buyer restraint. However, inquiries for Southern Pine did pick up in the Upper Midwest, where buyers commonly switch between S-P-F and Southern Pine. Traders noted potential for tighter availability of S-P-F to the region. But others countered that transportation eastward was far less of an issue out of Western Canada than southbound to the West Coast.
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