By Madison's Lumber Reporter
![](Lumber_madison_weekly_2020_07_17.JPG)
Unabated purchasing of North American
construction framing softwood lumber moved
prices higher last week, as customers turned to
the eastern market. Buyer dismay at record-high
Western S-P-F prices brought significant demand
for Eastern S-P-F, with those prices responding
upward accordingly. Confusion reigned throughout
the marketplace, with the closing of July lumber
futures contract on the Chicago Mercantile
Exchange — also at record highs — providing no
clarity.
The fact was that end-users needed wood, so
producers and secondary suppliers alike could
only pick through their weak inventories to find
the necessary stock. Sawmills were already
booked with production orders well into August
thus continuing to rise prices was the only
option.
![](Lumber_madison_weekly_2020_07_17a.JPG)
Western S-P-F purveyors in the United States described another crazy
week on their side of the border. Producers continued to struggle to
keep up with relentless demand as they raised asking prices ever higher
as wholesalers and distributors couldn’t fill the gap with their
depleted inventories, and buyers clamoured for any stick of wood they
could find regardless of cost.
Primary and secondary suppliers of Western S-P-F commodities in Canada
had very tight inventories while demand only seemed to be intensifying
with each passing week. Sawmill order files were into mid- to
late-August, and worsening rail car supply has put mills up to three
weeks late on orders already made. Producers continued to sell out
before 8:00am every day, ending up with little or no items on offer for
ravenous US customers. Standard Grade #2&Btr and Appearance Grade High
Line dimension soared in price again, rising between $40 and $56 with
zero push-back from frantic buyers.
![](Lumber_madison_weekly_2020_07_17b.JPG)
For the week ending July 17, 2020, prices of standard construction
framing dimension softwood lumber items increased yet further. Benchmark
softwood lumber item Western S-P-F 2×4 #2&Btr KD popped higher still, up
by +50, or +10 per cent, to US$554 mfbm, from US$504 the previous week.
The price for this lumber commodity was up +$160, or +41 per cent, from
one month ago. Compared to the same week in 2019 this price is up +$186,
or +51 per cent.
![](Lumber_madison_weekly_2020_07_17c.JPG)
“ Sawmill order files were pushed into the latter half of August and
customers were so desperate they were actually buying that far out.” —
Madison’s Lumber Reporter
Eastern S-P-F dealers were angered by sales taking place as high as $150
over print. Frustration was present through the supply chain as folks
scrambled to cover jobs but just couldn’t find the wood. Prices were
considerably higher again last week, with reload and distribution levels
higher than sawmills. Producers in the US were able to deliver product
in roughly two weeks, taking advantage of the fact that Quebec mills
were entering their two-week summer vacation period.
Rising enough to match the recent-record highs of mid-2018, last week’s
Western S-P-F 2×4 price improved another +$165, or +42 per cent,
relative to both the one-year and two-year rolling average prices of
US$389 mfbm (for both 2019 and 2018).
The below table is a comparison of recent highs, in June 2018, and
current July 2020 benchmark dimension softwood lumber 2×4 prices
compared to historical highs of 2004/05 and compared to recent lows of
Sept 2015:
![](Lumber_madison_weekly_2020_07_17d.JPG)
Related News:
-
U.S. & Canada softwood and panel markets - week 27, 2020 (Jul
17,
2020)
-
U.S. & Canada softwood and panel markets - week 26, 2020 (Jul
10,
2020)
-
U.S. & Canada softwood and panel markets - week 25, 2020 (Jul
02,
2020)
-
U.S. & Canada softwood and panel markets - week 24, 2020 (Jun
25,
2020)
-
U.S. & Canada softwood and panel markets - week 23, 2020 (Jun
17,
2020)
-
U.S. &
Canada softwood and panel markets - week 22, 2020 (Jun
10,
2020)
-
U.S. &
Canada softwood and panel markets - week 21, 2020 (Jun
3,
2020)
-
U.S. &
Canada softwood and panel markets - week 20, 2020 (May 27,
2020)
-
U.S. &
Canada softwood and panel markets - week 19, 2020 (May 21,
2020)
-
U.S. &
Canada softwood and panel markets - week 18, 2020 (May 15,
2020)
-
U.S. &
Canada softwood and panel markets - week 17, 2020 (May 8,
2020)
-
U.S. &
Canada softwood and panel markets - week 16, 2020 (May 1,
2020)
-
U.S. &
Canada softwood and panel markets - week 15, 2020 (Apr
23,
2020)
-
U.S. &
Canada softwood and panel markets - week 14, 2020 (Apr
17,
2020)
-
U.S. &
Canada softwood and panel markets - week 13, 2020 (Apr
08,
2020)
-
U.S. &
Canada softwood and panel markets - week 12, 2020 (Mar
31,
2020)
-
U.S. &
Canada softwood and panel markets - week 11, 2020 (Mar
24,
2020)
-
U.S. &
Canada softwood and panel markets - week 5, 2020 (Feb
11,
2020)
-
U.S. &
Canada softwood and panel markets - week 4, 2020 (Feb
4,
2020)
-
U.S. &
Canada softwood and panel markets - week 3, 2020 (January
27,
2020)
-
U.S. &
Canada softwood and panel markets - week 2, 2020 (January
20,
2020)
-
U.S. &
Canada softwood and panel markets - week 1, 2020 (January
13,
2020)
-
U.S. &
Canada softwood and panel markets - week 50, 2019 (December
17,
2019)
-
U.S. &
Canada softwood and panel markets - week 49, 2019 (December
10,
2019)
-
U.S. &
Canada softwood and panel markets - week 48, 2019 (December
3,
2019)
-
U.S. &
Canada softwood and panel markets - week 47, 2019 (November
26,
2019)
-
U.S. &
Canada softwood and panel markets - week 46, 2019 (November
19,
2019)
-
U.S. &
Canada softwood and panel markets - week 45, 2019 (November
12,
2019)
-
U.S. &
Canada softwood and panel markets - week 44, 2019 (November
5,
2019)
-
U.S. &
Canada softwood and panel markets - week 43, 2019 ( October
29,
2019)
-
U.S. &
Canada softwood and panel markets - week 42, 2019 ( October
22,
2019)
-
U.S. &
Canada softwood and panel markets - week 41, 2019 ( October
15,
2019)
-
U.S. &
Canada softwood and panel markets - week 40, 2019 ( October
8,
2019)
-
U.S. &
Canada softwood and panel markets - week 39, 2019 ( October
1,
2019)
-
U.S. &
Canada softwood and panel markets - week 38, 2019 ( September 24,
2019)
-
U.S. softwood and panel markets - week 37, 2019 ( September 17,
2019)
-
U.S. softwood and panel markets - week 36, 2019 ( September 10,
2019)
-
U.S. softwood and panel markets - week 35, 2019 ( September 3,
2019)
-
U.S. softwood and panel markets - week 34, 2019 ( August 23,
2019)
-
U.S. softwood and panel markets - week 33, 2019 ( August 16,
2019)
-
U.S. softwood and panel markets - week 32, 2019 ( August 09,
2019)
-
U.S. softwood and panel markets - week 31, 2019 ( August 02,
2019)
-
U.S. softwood and panel markets - week 30, 2019 ( July
26, 2019)
-
U.S. softwood and panel markets - week 29, 2019 ( July 19,
2019)
-
U.S. softwood and panel markets - week 28, 2019 ( July 12,
2019)
-
U.S. softwood and panel markets - week 27, 2019 ( July 03,
2019)
-
U.S. softwood and panel markets - week 26, 2019 ( June 28,
2019)
-
U.S. softwood and panel markets - week 25, 2019 ( June 21,
2019)
-
U.S. softwood and panel markets - week 24, 2019 ( June 14,
2019)
-
U.S. softwood and panel markets - week 23, 2019 ( June 07,
2019)
-
U.S. softwood and panel markets - week 22, 2019 ( May 31,
2019)
-
U.S. softwood and panel markets - week 21, 2019 ( May 24,
2019)
-
U.S. softwood and panel markets - week 20, 2019 ( May 17,
2019)
-
U.S. softwood and panel markets - week 19, 2019 ( May 10,
2019)
-
U.S. softwood and panel markets - week 18, 2019 ( May 03,
2019)
-
U.S. softwood and panel markets - week 17, 2019 ( April 26,
2019)
-
U.S. softwood and panel markets - week 16, 2019 ( April 19,
2019)
-
U.S. softwood and panel markets - week 15, 2019 ( April 12,
2019)
-
U.S. softwood and panel markets - week 14, 2019 ( April 05,
2019)
-
U.S. softwood and panel markets - week 13, 2019 ( March
29, 2019)
-
U.S. softwood and panel markets - week 12, 2019 ( March
22, 2019)
-
U.S. softwood and panel markets - week 11, 2019 ( March
15, 2019)
-
U.S. softwood and panel markets - week 10, 2019 ( March
08, 2019)
-
U.S. softwood and panel markets - week 9, 2019 ( March
01, 2019)
-
U.S. softwood and panel markets - week 8, 2019 ( February.
22, 2019)
-
U.S. softwood and panel markets - week 7, 2019 ( February.
15, 2019)
-
U.S. softwood and panel markets - week 6, 2019 ( February.
08, 2019)
-
U.S. softwood and panel markets - week 5, 2019 ( February.
01, 2019)
-
U.S. softwood and panel markets - week 4, 2019 (January. 25,
2019)
-
U.S. softwood and panel markets - week 3, 2019 (January. 18,
2019)
-
U.S. softwood and panel markets - week 2, 2019 (January. 11,
2019)
-
U.S. softwood and panel markets - week 1, 2019 (January. 04,
2019)
|