In an effort to make timber prices more responsive to market conditions, the latest changes to BC Timber Sales stumpage rates has that calculation based on recent lumber prices. As these changes start to take hold, the relationship between softwood lumber prices and log prices will become even more apparent.
Madison’s Monthly Lumber and Forestry Data Table
Compared to March 2020 total residential starts in the US last month shot up by +37% to a 1.74 million annualized rate, from 1.27 in the same month one year ago. March starts of single-family housing, the largest share of the market and construction method which uses the most wood, flew up by +37% compared to March 2020, at 1.24 million.
Once again providing good indication for an increase in near-term future home building, US single-family permits, meanwhile, were at 1.2 million, a significant jump of +36% compared to the same month last year.
Sharply increased homebuilding activity is being supported by lean inventories, especially for previously owned homes.
After reaching the seemingly unbelievable level of US$1,060, in the week ending April 2, 2021, the wholesaler price of benchmark softwood lumber commodity item Western S-P-F KD 2×4 #2&Btr was US$1,130 mfbm for the week ending April 9. This is up by +$70, or +6%, from the previous week.
That week’s price is up by +$90, or +9%, from one month ago when it was $1,040.