CME (USA) lumber again ends lower following weak cash
Chicago, Nov 8 (Reuters). Lower cash lumber prices this week caused Chicago Mercantile Exchange (CME) lumber futures to move mostly lower with spot November reaching a 6-week low before recovering, traders said.
Lumber futures closed $4.40 per thousand board feet lower to 50 cents higher with November down $2.40 at $217.40 after trading down to $214.80, the lowest level since Sept. 25. January ended off the most at $230.30 per tbf.
The cash market remains weak as production continues to outweigh demand. Prices will remain on a downtrend until there are either enough curtailments to firm the cash market or there is a reason to increase demand for lumber. Housing starts are already high following low interest rates, they said.
Chicago, Nov 8 (Reuters). Lower cash lumber prices this week caused Chicago Mercantile Exchange (CME) lumber futures to move mostly lower with spot November reaching a 6-week low before recovering, traders said.
Lumber futures closed $4.40 per thousand board feet lower to 50 cents higher with November down $2.40 at $217.40 after trading down to $214.80, the lowest level since Sept. 25. January ended off the most at $230.30 per tbf.
The cash market remains weak as production continues to outweigh demand. Prices will remain on a downtrend until there are either enough curtailments to firm the cash market or there is a reason to increase demand for lumber. Housing starts are already high following low interest rates, they said.
On Friday, the weekly Random Lengths cash report quoted standard and better cash spruce, which is deliverable against the November contract, at $186.00 per tbf, down $3.00 from midweek and down $8.00 from a week ago.
It also quoted No. 2 or better spruce, deliverable against all other CME contracts, at $199.00, down $6.00 from midweek and down $11.00 from a week ago.
"An already-sluggish trading pace in the West and Canada turned even quieter after midweek, while widespread curtailments began to support prices in the South," Random Lengths said in the report.
Cash markets were quiet late in the week because many lumber traders were attending an industry meeting in Dallas.
Producers' order files grew thinner as they shipped the last of those orders collected during the two-week October rally. Many mills fell well short of selling the week's production, Random Lengths added. Refco was an early seller of November, pit sources said.