Lumber prices in North American appear to be easing, but that’s not expected to last.
Analyst Russ Taylor says, the futures market in July shows prices dropping by about one hundred dollars to 550 USD per thousand board feet.
Taylor points out these are still record levels.
“The question is the futures market which is never a good indication in my view, they are pessimistic for 2019, I am very optimistic. I think we are going to see similar supply and demand imbalances that we have had this year. We just don’t have enough timber in North America or enough lumber to meet with demand and that again is going to stretch the supply chain require more imports from Europe at expensive prices.”
Taylor says, when prices drop below 400 dollars U.S. then sawmills start to worry, but he doesn’t see that happening in the short term