By Madison's Lumber Reporter As explained by
Madison’s many times in the past, as far as the
seasonal cycle of lumber sales — thus prices —
goes, normally, after the Labour Day long
weekend, demand starts to drop and by U.S.
Thanksgiving, demand reaches the annual low.
This didn’t happen last year, and has not been
happening this year. Is that a signal that the
yearly lumber market dynamics are changing, or
are these two years going to prove to be an
anomaly? Only time will tell … check back with
Madison’s often to find out.
Rising further when lumber prices are usually
getting quite soft for the year, in the week
ending Oct. 15, 2021, the price of Western S-P-F
2×4 #2&Btr KD (RL) was US$595 mfbm, which is up
by +$15, or +3%, from the previous week when it
was $580. This price is up by +$107, or +22%,
from one month ago when it was $488.
As Canadian suppliers came back from the Thanksgiving long weekend and
buyers digested their inventories, commodity trading overall experienced
a quiet week.
“Suppliers of Western S-P-F in the U.S. described a pullback in demand
as the market entered a digestion phase.” — Madison’s Lumber Reporter
U.S. buyers of Western S-P-F lumber continued to cover immediate needs
when necessary but overall sales volumes were lower than in recent
week. Demand was slow to start as suppliers in Canada were off on
Monday for Canadian Thanksgiving. Sawmills in the U.S. reported
order files pushing into early November.
Canadian Western S-P-F sawmills and distributers described a quieter
week of demand. Mill sales lists remained light however, and a
carousel of just-in-time buyers kept sales firmly ahead of supply.
Producers in Canada pushed up prices and extended sawmill order
files into the first week of November. Production volumes remained
lower than normal.
“Western S-P-F stud producers in Western Canada fielded stable
inquiries. An increasing number of studs buyers were on the
sidelines sorting out their own inventories. Stud mill order files
were largely into early November.” — Madison’s Lumber Reporter
When compared to the same week last year, when it was $960, the price
of Western S-P-F is down by -$365, or -38%. Compared to two years’ ago
when it was $370, this price is up by +$225, or +61%.
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