U.S. lumber prices drop further

Lumber futures fell toward $560 per thousand board feet, as demand softened and supply remained ample. US housing starts plunged 8.5% in August to a 1.307 million seasonally adjusted annual rate and building permits fell 3.7% to 1.312 million, the weakest readings since mid 2020 and well below expectations, which signals weaker construction activity ahead. At the same time earlier tariff shifts and higher US duties on Canadian softwood lumber encouraged front loaded shipments and stockpiling, creating an inventory overhang now being worked through. Producers have begun to cut output, with Interfor announcing ...