US lumber prices expected to see continued volatility

US  lumber was one of 2022’s worst commodity performers, and it has been volatile at the start of this year, but prices may gain on the back of a housing shortage. An overall lack of confidence in U.S. housing amid the sharp rise in interest and mortgage rates in the past year led to lackluster lumber demand, contributing to the “precipitous” decline last year in U.S. lumber futures, says Walter Kunisch Jr., senior analyst at HTS Commodities. “Compressing” domestic demand and strong U.S. imports were also a “combustible cocktail” for prices, he said. The ...