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CBOT lumber futures rose (LB1:COM) for the third straight session on Wednesday to $601.80 per 1,000 board feet, the highest intraday price since July 22, as supply cuts from a top Canadian producer outweigh rising interest rates that are hurting housing markets.
West Fraser Timber (WFG) announced production cuts at two British Columbia sawmills, equivalent to 2.5% of its total North American capacity, and it is cutting plywood output at another facility.
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U.S. builders obtain more than 25% of their lumber from Canada, which is the world's largest exporter of softwood lumber.
This year's surge in borrowing costs caused ~60K deals for home sales in the U.S. to fall through in June.