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While a measured pace prevailed through Wednesday, trading in framing lumber picked up steam on the Thursday of last week. One catalyst was a strong upward move in futures, although the impact on the cash market was uneven
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Traders across the distribution system were happy to see January pass. But for the first time since the holidays buyers showed a keen interest in mill offerings. Sales that developed on Wednesday lifted many framing lumber prices off the week’s lows. As some markets sprung to life, others remained dull, especially those hit with recent wintry weather. Inconsistent sales were also evident among mills in the same producing regions, with one result being larger-than-usual price spreads
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Solid carryover from last week’s more active finish extended order files and lifted framing lumber prices — some sharply. Many traders noted their most active week of early 2016; they covered near-term needs, and mills extended order files into mid- to late February. But some buyers held back, based on adequate inventories or on a sense of caution about the market’s near-term course. Even so, the Random Lengths Framing Lumber Composite Price rose $4, to $309
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Trading of US framing lumber slowed last week, but momentum carrying over from the previous week pushed many prices higher. Upward pressure eased as the week progressed. Buyers digested higher prices and order files that often pushed out into late February and early March. Wintry weather in some markets and the sinking stock market in the U.S. were cited as additional factors limiting follow-through from the previous two weeks’ action. The Random Lengths Framing Lumber Composite Price gained $4
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A midweek surge of orders in many species was the highlight of the framing lumber market. After a slow start, attributed largely to holidays in the U.S. and Canada on Monday, buying picked up on Wednesday afternoon and carried solidly into Thursday. One major exception was Southern Pine, as sales faded from the previous week’s action; traders cited a litany of concerns, from the weather to the economy
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Framing lumber trading paused after a mostly busy first three weeks of February. Prices in key species still finished the week higher, but the overall pace of sales slowed. Producers cited mid-March order files as the key reason for the pause, and buyers acknowledged that they needed time to digest recent purchases and higher prices.
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Expectations of some traders for a swift start to the year topped reality, as a number of factors left buyers straddling the fence. China’s weakening economy was a catalyst for dives in global stocks, and raised questions about the underlying strength of U.S. financial markets.
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French oak sawmill owners hope for the best and preferably faster, obviously. Even though they doubted that the so-called labeled auctions (i.e. under the labels of quality, as in FSC etc.) would have any immediate impact on the price of logs, they were hoping for the oak prices to stabilize. However, this does not seem to be the case judging by the results of the most recent auctions.
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Buyers in U.S. maintained a low profile through mid-January, limiting purchases to fill-ins or loadings that they perceived as values. Wintry weather arriving in key markets, economic concerns, and Friday’s close of the January futures contract were oft-cited reasons for the lack of activity. U.S. producers gave ground grudgingly, clinging to thin order files where they could
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A bearish tone enveloped framing lumber markets, as traders stepped back amid an onslaught of troubling economic news and a snowstorm poised to pound the Mid-Atlantic region. Prices of various dimension and stud items in all species tumbled
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Good news for forest owners in southwestern France. In a French softwood roundwood market that has generally tended to falter, maritime pine stands firm this year. Over the course of the first half of 2015, prices have aligned at high levels, while over the last six months of the year, price stability prevailed. This observation applies in particular for roundwood with a volume larger than 1 m3, intended for producing lumber. ''In late autumn, the large volume roundwood (1,5 m3) is still marketed at around 40 euro/m3, standing, under bark,'' says Emmanuel de Montbron
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Each year, Fordaq/IHB monitors auctions of standing timber organized in France by the National Forests Office (Office national des forêts-ONF). On our website, you can view the results of these auctions
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After a sharp drop of up to 20% reported throughout this summer, the US softwood lumber prices have increased for the sixth consecutive week, edging US$1 or 0.30% higher on November 6 to US$331 per thousand board ft. (mbf). However, the current price is still $41 or 11% below the price reported in the same period last year of $372/mbf
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The framing lumber composite’s six week price run came to an end in the week of Nov. 13 with a US$5 (1.51%) drop to $326 per thousand board ft. (mbf), reflecting a slowdown in framing markets which led to price softening
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Trading in framing lumber turned more upbeat, as concerns about this week’s expiration of the Softwood Lumber Agreement dissipated. Traders largely tossed aside any angst about heavier-than-normal shipments after the SLA’s October 12 expiration, as Canadian mills built order files into the second half of October. Demand was driven by secondaries replenishing thinning inventories. With most species showing at least an uptick in key prices, the Random Lengths Framing Lumber Composite Price rose $6.
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Last week, sales of framing lumber kicked into a higher gear on the heels of the previous week’s more upbeat tone. While many buyers remained cautious, they were also out of time in deferring purchases for jobs that needed coverage. Southern Pine continued to lead the way, with double-digit gains in 2x4 and 2x6 across the South. Active trading in Western S-P-F led to similar gains in the narrows. With some of the strongest weekly gains posted this year to date, the Random Lengths Framing Lumber Composite Price jumped $11
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US framing lumber sales picked up following the holiday break, but ample mill offerings kept a lid on upside price pressure. Slack sales to China left more production available for the domestic market to absorb. A few more producers announced market-related downtime, but traders looked for more curtailments to balance supplies with demand
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Carryover from mid September’s faster finish was modest, leaving framing lumber price trends flat to narrowly mixed. Gains were usually modest and came earlier last week. Several factors continued to weigh on traders’ outlooks. Chief among them was the scheduled October 12 expiration of the Softwood Lumber Agreement. Other factors included softening offshore export markets and currency exchange rates
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Trading last week was a mixed bag. Some framing lumber producers reported a steady flow of sales to buyers who needed to replenish thin inventories. But others noted dull, cautious trading that has typified the better part of September. Fear of further downside potential kept many buyers on the sidelines, even as bare pavement became more visible in their yards than wood products. Gains in Southern Pine
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Prices closed out July on a soft footing, as uncertainty loomed with August’s arrival. All eyes were on Canada, and how S-P-F mills will approach the market in the new month given a lower SLA export tax and a favorable exchange rate. Buyers widely anticipated heavier shipments from north of the border, while a hefty discount in September futures compared to cash prices also weighed on the market.
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Buyers in all US framing lumber markets steered clear of purchasing anything beyond what they had to have. While acknowledging that consumption in the field was decent, they cited a variety of reasons for caution. Among them: China’s currency devaluation and resulting weakness in global financial markets; ample availability of most key commodity items; and lackluster demand in offshore markets coupled with increasing volumes being imported
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Prices of US framing lumber were mostly soft last week, as steady consumption in the U.S. was outweighed by supplies. Traders surmised that the U.S. was the target for a larger share of both Canadian and U.S. production. While liquidity was decent, the market was unable to readily absorb the supplies. European imports were also a factor in East Coast markets
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Framing lumber buyers adopted a more cautious approach as July moved past its midpoint. Uncertainty about the market’s near-term direction abounded amid a bevy of issues to sort through. Prices that had been on an upward track leveled off, while those that were trending down failed to find any footing.
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A slower pace of framing lumber sales was widely reported, as uncertainty about the market’s next move left traders cautious. Much of the concern was focused on whether Canadian mills would push larger volumes into the U.S. market when August ushers in a lower tax under the Softwood Lumber Agreement, and a strengthening U.S. dollar provides further incentive to ship stateside
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