From the desk of Steven Strazza @Sstrazza and Ian Culley @Ianculley
Lumber futures have been on an absolute tear since last spring. The vertical but volatile price action off last year’s lows is something for the history books.
After trading down to 250 in late March of 2020, Lumber has since shot back above 1,600, where it trades today. It’s no wonder social media is full of people flaunting their wealth with stacks of timber.
But we have to ask… is it time for a pullback? Is this rally overdone here?
Let’s take a deeper look and discuss why we believe the logical move for Lumber over the short term is sideways… or even lower.