As the last of summer slow-down time for the North America construction
framing softwood lumber industry passed by, many solid wood commodity prices
slid down a bit further.
This was normal for the time of year; as Labour Day approached and the true
shift into autumn assessment of the market situation will happen. All eyes
will be on supply levels.
New home building was still low compared to historical levels and demand
remained quite muted — for the third year — so end-users continued to be
cautious about not building up inventory.
Their concern was that prices might fall more, leaving them stuck with
expensive lumber in their yards. However, the data shows that prices were
very level compared to the previous year and to 2024 as well.
Madison’s has been informing that sawmills first cut production before
letting prices drop any lower, and that was the ongoing situation. There
were more curtailments and even closure announcements in August.
In the week ending August 21, 2026 the price of Western Spruce-Pine-Fir 2×4
#2&Btr KD (RL) was US$480 mfbm, which was down -$10, or -2% from the
previous week when it was $490, said weekly forest products industry price
guide newsletter Madison’s Lumber Reporter.
That week’s price was down -$25, or -5%, from one month ago when it was
$505.
Compared to the same week last year, when it was US$489 mfbm, the price of
Western Spruce-Pine-Fir 2×4 #2&Btr KD (RL) for the week ending August 21,
2026 was down -$9, or -2%.
Compared to two years ago when it was $390, that week’s price was up +$90,
or +23%.
Solid wood commodity pricing continued to meander in a broad,
flat-to-downward trend. September couldn’t come soon enough for suppliers.
KEY TAKE-AWAYS:
• Lower cash numbers on key dimension softwood lumber items confirmed
negative price movement in lumber futures from previous weeks.
• It looked like the North American construction framing lumber market was
building up to a riveting Autumn.
• Sellers of Western-SPF in the US continued to assert that the market had
less downside left than perhaps purchasers hoped.
• Sales of Western-SPF in Canada experienced the typical late summer
slowdown in the back half of August.
• Tight overall supply reduced the speed of this latest price correction
downward.
• There was a surge of Eastern-SPF buying later in the week that buoyed the
spirits of wary suppliers in that region.
• Producers in the Northeast extended sawmill order files by one or two
weeks, carrying them through to September.
• After multiple weeks of downward sliding Southern Yellow Pine prices
continued to flounder.
MADISON’S BENCHMARK TOP-SIX SOFTWOOD LUMBER AND PANEL PRICES: MONTHLY
AVERAGES
Source: madisonsreport.com
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