written by reader Lumber prices and stocks

By Darrell, May 18, 2021

Spot Lumber has crashed from a high of $1,686 11 days ago to $1,264 today, a 25% drop. Stocks such as Weyerhaeuser (WY) are sliding down slightly. Several weeks ago I left a note here about the massive re-hiring of lumber mill workers who were laid off due to covid, thus causing lumber prices to start dropping as supply finally catches up with demand. My view is that lumber stocks have peaked and the bubble is over.

This is a discussion topic or guest posting submitted by a Stock Gumshoe reader. The content has not been edited or reviewed by Stock Gumshoe, and any opinions expressed are those of the author alone.



This site uses Akismet to reduce spam. Learn how your comment data is processed.

1 Comment
Inline Feedbacks
View all comments
May 19, 2021 10:57 am

The bubble of short supply and huge demand may be over but it looks like new housing and remodels are still growing, so what’s the best move to make in the market? WY is still about double from it’s March 2020 low (is dropping today) however will they be able to keep revenue strong as their mills get back up to 100%? One area to watch is whether the 9% tariff drops further and if inflation goes higher. One will drop the price and the other raise it so they could cancel each other out.

Add a Topic
Add a Topic
👍 8