Lumber prices fall 20% year-on-year

Last updated: July 8, 2024 6:14 pm

By bexib 1 Min Read

by Calculated Risk July 8, 2024, 10:12 AM

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 switched to a physically delivered Lumber Futures Contract which began 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 $446.00 per 1,000 board feet, down 20% from a year ago.

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.

The slowdown in the housing market has prevented any significant increases from occurring in spring 2023 and spring 2024. LBR is currently at its lowest level since the inception of the futures contract.