Folklore abounds with stories of Wall Street stock traders and lavish steak dinner lunches. Lumber traders not so much. We’re told that stock traders are sticking closer to their trading desks these days, leaving many of Manhattan’s lunchtime eateries vacant. Global turbulence in financial markets through the first 60 days of 2016 explains a “re-calibrating” of the Wall Street lunch; the steakhouse slowdown coincided with the S&P 500’s worst-ever start to a year. Even so, it’s reported a recent $1,000 lunch tip left by one regular suggests there are still a few traders seemingly immune to the market’s ups and downs.
In midst of a year without
export tax winter, no doubt lumber traders are also spending more noon hours at their desk. Unlike this time last year, when one of the harshest winters on record stifled demand, lumber is even hotter than the weather. It’s reported here that lumber futures is up 22% this month, outperforming stocks, oil, and gold. Out in the field, Random Lengths confirms “producers have kept order files advancing deeper into April” on #2&Btr Western SPF and “moved prices up accordingly”. At the secondary level meanwhile, at least one trader/blogger has characterized activity over the past ten days as “the quietest hot lumber market” in recent memory. With the BC Wildfire Service having just announced early burning restrictions due to dry conditions in the Cariboo, traders will be closely monitoring the day-to-day changing landscape – mostly from their desks.
“There’s nothing like a little bit of a sharp correction to improve our work ethic.”
– John Manley, New York-based chief equity strategist at Wells Fargo Funds Management, which oversees about $233 billion.
I recently finished recording sax tracks on two more original compositions by Dave Friend for our Funkify album.