Lumber futures rose to four-month high
Lumber futures rose the maximum permitted by the Chicago Mercantile Exchange on Tuesday, reaching a four month high, as the U.S. disputes the pricing of wood imported from Canada, the biggest foreign supplier reports Bloomberg.
British Columbia is “under-pricing” timber from public lands and “circumventing the export measures” in an agreement the two nations reached in 2006, the Office of the U.S. Trade Representative said in a statement dated Oct. 8.
“The United States and Canada have been engaged in discussions regarding the apparent under-pricing of timber harvested in the Interior region of British Columbia for many months, but those discussions have so far been unsuccessful,” said U.S. Trade Representative Ron Kirk. “The decision to move to consultations is intended to emphasize the importance of resolving this matter. As contemplated under the Softwood Lumber Agreement, we are asking to continue our engagement on this issue and ensure that the SLA is implemented as intended.”
Read the full statement here.
The U.S. quested talks to resolve the dispute. Lumber futures have surged 13 % from a week ago and 30% in the past year.