Update: Lumber Prices Up 6% YoY
by Calculated Risk on 2/01/2025 05:15:00 PM
This might be something to watch again. Here is another monthly update on lumber prices.
SPECIAL NOTE: The CME group discontinued the Random Length Lumber Futures contract on May 16, 2023. I switched to a physically-delivered Lumber Futures contract that was started in August 2022. Unfortunately, this impacts long term price comparisons since the new contract was priced about 24% higher than the old random length contract for the period when both contracts were available.
This graph shows CME random length framing futures through August 2022 (blue), and the new physically-delivered Lumber Futures (LBR) contract starting in August 2022 (Red).
Click on graph for larger image.
This graph shows CME random length framing futures through August 2022 (blue), and the new physically-delivered Lumber Futures (LBR) contract starting in August 2022 (Red).
On January 31, 2025, LBR was at $592.50 per 1000 board feet, up 6.4% from a year ago.
Click on graph for larger image.
There is somewhat of a seasonal demand for lumber, and lumber prices frequently peak in the first half of the year.
We didn’t see a significant runup in the Spring period of 2023 or 2024 due to the housing slowdown.
But we might see an increase due to the tariffs on Canada.
