Lumber Prices dip below $250

Lumber prices on the Chicago Mercantile Exchange dipped below $250 per thousand board feet (MBF) during the final week of September, for the first time since March of last year, when fears of dumping by Canadian mills peaked with expiration of the Canadian Softwood Lumber Agreement.

General market weakness on stocks, bonds, and commodities followed the September 11 terrorist attack on the World Trade Center in New York City, and the Pentagon in Washington, DC. Continuing uncertainty over possible new terrorist activity and a drawn out world-wide war against terrorism continues to linger over markets.

The lumber market had stabilized somewhat at levels around $300 MBF during the early part of this year, when it became apparent that the Canadian Softwood threat would be controlled by imposition of a 19% duty on imported Canadian lumber above the former quota levels.

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