Out of Touch?

There appears to be a severe disconnect between projections of long term scarcity for lumber supply and present realities in the cash market. Widespread buy-in to a Super Cycle mentality of supply/demand balance at the same time has the market bewildered by what could be described as a bloodbath in many current lumber prices. Western SPF stud prices are reportedly off over $100 within the past three weeks. Media reports posted just this morning suggesting that “the gap between lumber supply and demand has fueled an ongoing price escalation” might fairly be characterized as out of date, if not out of touch: Lumber Supplies Remain T…Chain – ProSales Online

“Markets take the stairs up and the elevator down”
– Wall Street adage

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s