Canadian lumber stocks have produced spectacular returns for investors during the stock market rebound since March. For evidence that the gains are sustainable, look south of the border. …Prices for SPF have rebounded 19 per cent over the past six weeks. Prices for southern yellow pine lumber have surged 62 per cent over the same period. As a result, Canadian forestry stocks, which are essentially leveraged bets on lumber, are on a tear. Canfor Corp. has risen 60 per cent from its low in March. West Fraser Timber has risen 75 per cent over the same period. Interfor has more than doubled. It’s difficult to dismiss the gains as speculative fervour. …Key to the demand issue is the U.S. housing market, where some indicators are now pointing toward improvement. …At the same time, current home owners are driving retail demand for lumber as home improvement projects ramp up. [We respect the copyrights of the source publication – full access may require a subscription]