(ZEROHEDGE) – Earlier this month, we told readers, "Lumber Prices Slump As Historic Boom Hits A Wall," as sawmills were catching up with the flurry of demand from North American homebuilders amid supply chain issues, which created massive supply constraints, which propelled lumber prices to record highs.
Ole Hansen, Saxo Bank's chief commodity strategist, said the plunge in lumber prices might spiral down some more as speculators exit their positions and supply catches up with demand.
Lumber futures on Chicago Mercantile Exchange are down more than 2% on Thursday. Prices have fallen 44% since May's record high of over $1,700 per thousand board feet, although prices remain 282% higher than the lows seen in early 2020.
Advertisement - story continues below