US lumber prices hover around $550 due to policy optimism and supply restraint

US lumber futures traded around $550 per thousand board feet in late December, supported by expectations of easier monetary policy and disciplined supply, even as construction demand remains subdued. Growing confidence that the Federal Reserve will continue cutting interest rates in 2025 has improved the medium-term outlook for housing and renovation activity. Lower anticipated mortgage costs are encouraging cautious restocking across the supply chain, offering some price support despite weak end-use demand. On the supply side, North American sawmills have maintained restrained production levels, operating below capacity to protect margins. This strategy has limited spot availability ...