Lumber Climbs to Nearly 3-Month Highs

Lumber futures have surged above $600 per thousand board feet, reaching a nearly three-month high due to improved demand expectations and tightening supply in North America. The drop in 30-year mortgage rates to 6.06% has boosted purchase and refinance activity, prompting builders to restock for the upcoming spring construction season. Additionally, higher US duties on Canadian softwood have increased costs and led to reduced harvests and mill closures in Canada, further constraining supply. Elevated construction input costs are also being reported, reflecting tariff-related pressures in the supply chain.