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DJ The Covid Lumber Rally Rages On

· 02/05/2021 13:15

By Ryan Dezember

Lumber prices' wild ride didn't end with 2020. Futures for March delivery added another $32 Friday morning to trade at $915.60 per 1,000 board feet. That's more than twice the price this time last year, before lumber demand went bonkers (https://www.wsj.com/articles/america-is-on-a-lumber-binge-11594305886), and not far from the all-time high of $1,000 set in during intraday trading in September. Spot prices for southern yellow pine hit records last month and spruce, pine and fir from forests in the Northwest are making highs this month.

Prices have defied the typical seasonal slow down](https://www.wsj.com/articles/lumber-prices-rise-again-defying-the-normal-seasonal-slowdown-11605868202) thanks to homebuilders hammering away through a mild winter and dealers restocking ahead of spring. With Americans still stuck at home, lumber producers expect the [pandemic-induced remodelling boom (https://www.wsj.com/articles/home-depot-covid-coronavirus-home-improvement-lockdowns-stimulus-check-remodel-11597426959) to rage on.

"Household balance sheets are pretty spectacular right now and there's some disposable income that isn't going into cruises and holidays and is staying at home," Barton Bender, head of sales for saw mill owner Interfor Corp., told investors Friday. "Yeah, lumber costs a little bit more, but there certainly seems to be a number of people that are pretty focused on improving their homes."

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February 05, 2021 13:15 ET (18:15 GMT)

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