Until Tuesday all eyes were on trading of softwood lumber futures on the Chicago Merchantile Exchange. The July contract closed Monday unchanged at $360. By Tuesday morning the September contract down $12 and trading at $336, with little optimism of the recent price drops reversing direction.
![Western Spruce KD 2x4 #2&Btr prices JULY 2019](https://madisonsreport.com/wp-content/uploads/2019/07/Screen-Shot-2019-07-16-at-10.58.16-AM-1024x317.png)
For it’s part, cash price (wholesaler, “print”) for benchmark construction framing dimension softwood lumber commodity Western Spruce-Pine-Fir 2×4 (net FOB sawmill) was down $10 on the previous week, at US$392 mfbm. At producers, sawmill order files were barely longer than a week although most manufacturers were quoting a 2-week order file.
In Eastern Canada, the annual summer construction and forestry two-week break could not could soon among. Among players in the west there were rumours circulating of still more curtailments and down-time. The more cynical looked at the job action last week on the coast as more of a “mutually decided” curtailment than a labour dispute.
Prices of most lumber commodities were flat or slightly down as the market faltered following July holidays in Canada and the US. — Madison’s Lumber Reporter
Expectations would be for prices to moderate along current levels until the end of August, unless something drastic happens (like severe fires or storms).
![Madison's Weekly Movers & Shakers Softwood Lumber and Panel Prices Chart JULY '19](https://madisonsreport.com/wp-content/uploads/2019/07/Weekly1-2.png)
Be ahead of these data releases … Don’t delay, this week’s softwood lumber market comment was published to the website Monday morning.
After terrifying drops in early summer which landed at close to US$400 mfbm, this week the wholesaler price of benchmark lumber commodity Western Spruce-Pine-Fir 2×4 fell another -$10, or -2.5%, to end the week at US$392 mfbm. This week’s price is +$16, or +4%, more than it was one month ago. Compared to one year ago, this price is down -$230, or -37%.
The below table is a comparison of recent highs, in July 2018, and current July 2019 benchmark dimension softwood lumber 2×4 prices compared to historical highs of 2004/05 and compared to recent lows of Sept 2015:
![Madison's Historical Softwood Dimension Lumber Price Comparison Table JULY 2019](https://madisonsreport.com/wp-content/uploads/2019/07/Screen-Shot-2019-07-16-at-1.08.26-PM-1024x383.png)
Madison’s Lumber Prices, weekly, are a good forecast indicator of US home builder’s current lumber buying activity ——> DETAILS
Compared to historical trend, this week’s WSPF 2×4 #2&Btr KD S4S (RL) price is down -$2, relative to the 1-year rolling average price of US$394 mfbm. The 2-year rolling average price is US$452 mfbm.
A palpable two-tiered market persisted in Eastern Canada, as secondary suppliers did the majority of wheeling and dealing while sawmills remained much quieter. — Madison’s Lumber Reporter
![Madison's Weekly Movers & Shakers Softwood Lumber and Panel Prices Chart JULY '19](https://madisonsreport.com/wp-content/uploads/2019/07/Weekly2-2.png)