Along with the rest of the Commodities markets, Lumber has gotten hammered by the Dollars recent rally. Lumber is down some 30% off its recent highs. Possible support is evident between $220 and $225.
Until New Home Starts make some sort of turnaround its hard to see Lumber screaming higher. While Builders have made great strides in reducing their Inventories (w. help from their tight-fisted lenders).....
...there is going to need to be a significant reduction in Used Homes available for Sale. Unfortunately, Used Home Inventories took a pretty steep seasonal run higher.
Until New Home Starts make some sort of turnaround its hard to see Lumber screaming higher. While Builders have made great strides in reducing their Inventories (w. help from their tight-fisted lenders).....
...there is going to need to be a significant reduction in Used Homes available for Sale. Unfortunately, Used Home Inventories took a pretty steep seasonal run higher.
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