Lumber prices barreling lower again

I enjoy watching the price of Lumber. It’s tells a good story.

Currently, it is barrelling towards a $570 support. The trend has been negative as it continues to make ‘lower low’.

Lumber’s price action has also been a good study in mean reversions and fibonacci retracements.

It also tends to lead the S&P 500 in near-term peaks and troughs.

I also think it has been a handy barometer of inflation or at least scarcity of supply.

For those watching inflation, it’ll be interesting to watch how the higher prices of the past several months will affect lumber yards, timber truss manufacturers and homebuilders as they try to pass on higher ‘finished’ prices compared to the more competitive prices buyers of lumber can achieve today?

May 23, 2022

by Rob Zdravevski

rob@karriasset.com.au