WOOD / 3 Stocks to Watch as Lumber Prices Fall

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