Will US lumber prices rally at the beginning of 2025?

As the end of 2024 approaches, the US lumber market has seen significant price increases, with futures contracts reaching their highest levels since April 2024. The primary factors driving these price hikes are supply constraints and growing demand, which are expected to persist into 2025. By mid-November 2024, the CME lumber futures contract was trading at nearly $620 per 1,000 board feet, a sharp rise from the September low of $512. These developments indicate that the downside risk for lumber prices may be limited, with the potential for explosive upside in the near future. Lumber futures have ...