U.S. lumber futures rallied further to hit new record highs above $1,500 on Wednesday as home building and renovations caused a shortage, Bloomberg reported.
- July lumber futures on the Chicago Mercantile Exchange soared by as much as 4% to reach a record high of $1,541 per 1,000 board feet for a most-active contract.
- Prices jumped by over four times in the past year, as home construction and renovations forced builders to secure supplies while lumber mills moved to boost their inventories.
- The situation could also be worsened due to the lack of workers involved in trucking and construction.
- The market expects the rally to continue, with North America heading into its peak building season.
- Data from the National Association of Home Builders indicate that the price of an average new single-family home has increased by $35,872 in the past 12 months.