Lumber pricing spikes in the aftermath of Japan's massive earthquake
The Chicago Mercantile Exchange reported pricing on May lumber futures rose 0.7 percent to $311.10 per 1,000 board feet. Japan is a leading market for hardwood lumber exports, and reconstruction will increase demand significantly, with likely impacts on U.S. domestic pricing. According to official figures, 80 422 houses are damaged and 4798 houses have been destroyed. Canadian Forest shares have risen sharply after the disaster, but the shares for the Swedish sawmills, Rörvik Timber and Berg is still low. Swedish investors seem to have little hope of selling wood for reconstruction than the Canadian. Read article at Woodworking Network.
"If the radiation risk does not get worse in northern Japan, we should see a rebound in corn, soybeans, cattle, crude oil, copper and possibly lumber prices, " said Todd Hultman, editor of DailyFutures.com in an article published by Nasdaq. "These are all commodities with relatively tight supplies in relation to 'normal' demand."