Lumber May Fall 25% After Leading Commodities in 2012 (Bloomberg com)
Lumber futures may tumble as much as 25 percent from a seven-year high as output increases in Canada, the world’s biggest exporter, according to Forest Economic Advisors LLC.
The price may touch $300 per 1,000 board feet in 2013, Paul F. Jannke, a principal at the Westford, Massachusetts-based consulting company, said in a telephone interview on Dec. 27. In mid-October, he correctly forecast the rally. Futures on the Chicago Mercantile Exchange on Dec. 26 reached $399.50, the highest since April 2005.
“We’re pretty close to the peak,” Jannke said. “The initial spike tends to be the highest, then production ramps up. If the mills increase shifts from a 40-hour week to a 50-hour week, that’s a big jump, and everybody is ratcheting up their work weeks.”
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