WOOD / Lumber prices see no relief and continue to drop as Fed rate hikes put pressure on the housing market

WOOD includes commodity exposures in lumber, pulp, and cyclical exposures in packaging companies. Packaging companies are suffering due to pressure fr more_horizontal

Lumber prices have experienced extreme volatility in recent years due to low liquidity and macroeconomic factors. The Chicago Mercantile Exchange intr more_horizontal

When it comes down to it, lumber is at the core of my research. It's now been eight years since my original research paper talked about the relationsh more_horizontal

Buffeted by housing market headwinds and tailwinds, lumber has made headlines as one of the most volatile commodities of recent years. What conditions more_horizontal

Lumber prices are stable - a new contract makes lumber hedging more versatile. Lumber remains highly illiquid, increasing the chances of explosive and more_horizontal

The National Association of Realtors said it expects the median home price to increase 0.3% this year, compared to a near-10% gain in 2022. more_horizontal

A further rise in lumber prices would be a positive for producers, but not so much for consumers who are still reeling from high levels of inflation. more_horizontal

"NAHB is expecting weaker housing conditions to persist in 2023 and we forecast a recovery coming in 2024," economist Robert Dietz said. more_horizontal