Wood futures rise slightly
-- Purchasing, 1/3/2006
Lumber futures on the Chicago Mercantile Exchange are entering the New Year in a range of $360-$367/thousand board feet, only a mild increase compared with a spot-market range of $335-$353 in the fourth quarter.
Certain building materials—insulation, drywall, roofing materials and carpet padding—already are rising in price, says economist Michael Carliner at the National Association of Home Builders. This also reflects the view of speculators that inflation will be the 2006 watchword for most construction and building materials. However, lumber prices may not explode for as much as six months. That’s because the series of 2005 hurricanes downed trees with an estimated 15 billion to 19 billion board feet of timber, according to the Forest Service, and that is expected to hold prices-inflation down for a time. The question for buyers is the percentage of the downed trees that can be salvaged before they rot.
View All Blogs
Now Playing:
