Frozen

The Disney movie it ain’t! In reality some of the coldest, nastiest winter weather on record in much of the Northeast and Southern U.S. could lend more unpredictability to lumber markets in the ensuing weeks and months. With the Framing Lumber Composite Price at $357 today, for the first time since 2013 traders are beginning to ponder the Prevailing Monthly Price calculation. If the next two Composite Prices (Fri 2/27, Fri 3/6) average less than $351, a 5% export charge would be triggered for April on Canadian softwood lumber shipments to the United States.

For now, polar bears – those not hibernating around Hudson Bay – are reportedly migrating toward Nashville. All the love of Valentine’s Day and lumber offerings full of heart centre seem a distant memory. Understandably, customers in the frozen parts of this continent seem less than enthusiastic about answering phone calls, unless you’re the service call in response to a power outage or frozen pipes.

“In the case of lumber folk, hibernation is tied to market temperature. That is, sluggishness tends to set in as the market cools.”
– From Going to Sleep – article written by Ernie Harder (23 October, 1990) holds relevance to today’s picture and winter weather stopping for the moment at least markets.

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