The price of lumber has risen nearly 30% so far this month, in step with the wider rally in global commodities as economies around the world reopen. <\/p>\n\n\n\n
“I believe it’s part of the larger move in commodities,” David Russell, VP of market intelligence at online broker-dealer TradeStation, told Insider. “We have a kind of a broad shift of money toward commodities and materials in the broader market.”<\/p>\n\n\n\n
Russell said commodity prices \u2014 including those for iron, oil, soybeans, and fertilizer \u2014 have mostly pointed higher amid cold winter weather, geopolitical tensions, and supply chain disruptions.<\/p>\n\n\n\n
After briefly cooling off in the past weeks,\u00a0lumber\u00a0futures rose for the sixth straight session on Wednesday, hitting $1,204.90 per thousand board feet to its highest for the month.<\/p>\n\n\n\n
That’s a 29% jump from February 1, when the essential building material was trading at $934.90 per thousand board feet. Still, lumber is 30% below its record high of $1,711 reached in May 2021.<\/p>\n\n\n\n
Russell also attributed the recent jump in lumber to the US dollar’s slide Wednesday ahead of key data on consumer prices. When the dollar weakens, general commodity prices strengthen, giving the two an inverse relationship.<\/p>\n\n\n\n
Lumber prices have skyrocketed in the past year due in part to distorted supply chains during the pandemic. For instance,\u00a0shipping problems\u00a0from Resolute Forest Products, one of Canada’s leading producers, have put lumber supply under\u00a0 stress.<\/p>\n\n\n\n
Adding to the price pressures is an elevated focus on home building and home improvement as more Americans look to adjust to the work-from-home trend.<\/p>\n\n\n\n