by Calculated Risk on 12/06/2022 12:26:00 PM

Here is another monthly update on framing lumber prices.

This graph shows CME random length framing futures through December 6th.

Lumber was at $413 per 1000 board feet this morning.  

This is down from the peak of $1,733, and down 54% from $907 a year ago.

Prices are close to the pre-pandemic levels of around $400.

Click on graph for larger image.

There is somewhat of a seasonal demand for lumber, and lumber prices usually peak in April or May, although prices peaked much earlier this year.

It is unlikely we will see a runup in prices as happened at the end of last year due to the housing slowdown.

There was this press release yesterday announcing production cuts "due to very weak market conditions": 

Canfor Corporation (TSX:CFP) is announcing a temporary reduction in Canadian production due to very weak market conditions. The production will be reduced through curtailments at all solid wood facilities in B.C. and Alberta. This will remove approximately 150 million board feet in December and January. The curtailments will start to be implemented on December 19, 2022 and will range from one to four weeks across its Canadian operations. The Company will continue to adjust operating rates to align with market conditions and anticipates that the majority of its BC facilities will operate below full capacity in the New Year.