Stock market chaos spurs cautious buying and drop in lumber price

Extreme volatility in the stock market, and accompanying widespread concern about the broader economy distracted framing lumber traders all week.

Constant shifts in news emanating from the White House about tariffs kept traders on edge. Many traders, particularly in Canada, spent much of the week at the Montreal Wood Convention.

Buyers replenished cautiously and conservatively all week, and many stayed primarily on the sidelines. Weakness in the futures market gave Western S-P-F buyers another reason for caution. A perception that downside risk will linger in the weeks ahead pushed buyers to the sidelines and prices of #2&Btr 2×4 through 2×10 fell by double digits as mills searched for offers.

Southern Pine sales were steady amid the tumultuous economic news. Traders, however, lamented that a seasonal upswing in demand continued to lag the strength that historically emerges in the spring.

Trucking availability was increasingly a key factor in negotiations. Many traders described trucking as a “nightmare,” noting that scarce availability was the most severe they had seen in a decade or more.

In the Eastern S-P-F market, discounts evident the week before spilled over into the start of this week. #1&2 2×6 was often singled out for its weakness, but softness as a whole was widely noted. A similar vibe emanated from the Inland market, with #2&Btr 2×6 again available at discounted levels.

Producers regularly opened to modest counters, but fielded offers seeking more aggressive discounts throughout the week. Board prices mainly sustained the same patterns amid steady but often lackluster demand.

Some Ponderosa Pine mills were forced to discount more in an effort to move excesses. Southern Pine prices often increased, although some mills reported a slower pace of sales.

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