Lumber Costs Up 26% YoY

Next Business 24

8 months ago

by Calculated Danger on 7/07/2025 02:38:00 PM

That is one thing to look at once more. Right here is one other month-to-month replace on lumber costs.

SPECIAL NOTE: The CME group discontinued the Random Size Lumber Futures contract on Might 16, 2023. I switched to a physically-delivered Lumber Futures contract that was began in August 2022. Sadly, this impacts long run value comparisons because the new contract was priced about 24% larger than the outdated random size contract for the interval when each contracts have been obtainable.

This graph exhibits CME random size framing futures by August 2022 (blue), and the brand new physically-delivered Lumber Futures (LBR) contract beginning in August 2022 (Pink).

On July 7, 2025, LBR was at $611.50 per 1,000 board toes, up 26% from a 12 months in the past.

Click on on graph for bigger picture.

There may be considerably of a seasonal demand for lumber, and lumber costs incessantly peak within the first half of the 12 months.

Observe that final 12 months costs bottomed in early July at $449.00 per 1,000 board toes, so the year-over-year comparability might be simpler within the months forward.

The pickup in early 2018 was because of the Trump lumber tariffs in 2017. There have been enormous will increase throughout the pandemic on account of a mix of provide constraints and a pickup in housing begins.

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