FX.co ★ Lumber Rises to 8-Month High

Lumber futures climbed above $630 per thousand board feet, the highest level since October, driven by higher effective US import costs on Canadian softwood and expectations of tighter supply. Prices advanced even after a modest reduction in preliminary antidumping and countervailing duties, as the overall tariff burden remains steep at about 35.9%, including the existing Section 232 levy scheduled to take effect in August. Market participants are also contending with uncertainty ahead of final duty determinations, prompting many buyers to front-load purchases and bolstering near-term demand.

On the supply side, US domestic production remains constrained, while structural demand linked to housing stays substantial. Softwood lumber and engineered wood products are core materials in new residential construction. Each new home typically requires around 15,000 board feet of lumber in addition to significant volumes of engineered wood products, keeping baseline consumption elevated even in a relatively soft housing cycle.