Lumber prices slightly down compared to last year

by Calculated Risk June 5, 2024 1:01 PM

We provide monthly updates on lumber prices.

Notices: of CME Group Discontinuation We closed our Random Length Lumber Futures Contract on May 16, 2023. We are now switching to a new physically delivered lumber futures contract that launched in August 2022.

Unfortunately, this affects long-term price comparisons, as the price of the new contract was approximately 24% higher than the old random-length contract during the period when both contracts were available.

The chart shows CME Random Length Framing Futures through last August (blue) and the new physically delivered Lumber Futures (LBR) contract starting in August 2022 (red).

LBR is currently at $489.50 per 1,000 board feet, down 4% year over year.

Click on the graph to enlarge the image.

Demand for lumber is seasonal, with lumber prices often peaking in the first half of the year.

Due to the slowdown in the housing market, there is no significant increase expected in spring 2023 and no significant increase expected in spring 2024.