Lumber price gaps continue to expand ahead of Thanksgiving

The price gap between Southern Pine and most other North American framing lumber species continued to expand — in some cases stretching to historical ranges. Downward pressure mounted in the South, while tightening supplies kept Spruce and western species on an upward trajectory.

The coming Thanksgiving holiday contributed to an ongoing cautious approach among buyers in the South. Many traders noted that Southern Pine’s unusual discount to other species prompted substitution, especially in the Upper Midwest. But species substitution wasn’t as prevalent as many traders anticipated given the price differences.

Prices of Western S-P-F continued to inch up in late trading, but most mills and buyers reported a slower pace as the week progressed. Many chalked it up to the approaching US holiday, price fatigue and a combination of limited needs and supplies. Several items have hit their highest price levels of the year.

Lumber futures charted a similar course, with modest gains on Monday and Tuesday giving way to selling through the rest of the week to date. The board traded near par with cash in most species.

The Coast lumber market continued its surge, with Hem-Fir #2&Btr dimension gaining $10-20 while Douglas Fir rose $10-35. Opinions on how much gas was left in the tank of the current run varied. By Thursday afternoon, several market participants reported that they were observing sales taper off.

In the Inland region, demand for all widths of 2&Btr dimension was solid, but 2×4 remained the least desired. While 2×12 often posted the strongest gains, 2×6 and 2×10 also showed strength. Gains were often a step behind the previous week.

The combination of limited availability and decent sales activity kept most board prices static. #2&Btr 1×10 across most western species and regions remained weak. Southern Pine #2 1×6 remained relatively strong.

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