FX.co ★ Lumber at 578.67USD/1000 board feet

Lumber futures have dropped to below $580 per thousand board feet, declining from a two-and-a-half-year peak of $685 on March 24th. This decrease is attributed to rising apprehensions about a housing market slowdown, exacerbated by escalating trade tensions that dampen the demand forecast in North America. The significant downturn marks a reversal of earlier gains that were propelled by anticipations of additional tariffs. President Trump's comprehensive 10% import levy has heightened fears of a wider economic slowdown. These new tariffs could potentially add about $6,400 to the cost of constructing an average home, further challenging affordability within an already delicate housing market. This added expense, compounded by the prospect of heightened duties on Canadian lumber, is inflating building costs for developers, limiting construction activities, and reducing the demand for wood. Both the US and Canadian construction sectors are experiencing a deceleration, as commodity markets adapt to the decrease in housing and renovation demand alongside an increase in supply.