Tree Frog Forestry News

Lumber heads for best rally in 24 years on mill curtailments

By Ashley Robinson
Bloomberg News
June 14, 2019
Category: Business & Politics
Region: Canada, United States

Lumber futures are one pace for their biggest weekly gain since 1995 as Canadian mill curtailments are finally bringing into sight the end of overproduction that boosted building-company profit. …“This is a good sign,” Joshua Zaret, a senior analyst with Bloomberg Intelligence, said in a telephone interview. “When you start to see capacity closures, it means you’re probably not that far away from the bottom of the pricing cycle.” Lumber jumped by as much as the exchange maximum of US$19, or 5.4 per cent, to US$373.80 per 1,000 board feet Thursday on the Chicago Mercantile Exchange. Rolling most-active futures are up about 18 per cent this week, on pace for the biggest such advance since June 1995. …Canfor shares are up about 15 per cent this week amid the announced production cuts. The stock is still down almost 40 per cent in 2019.

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