Yet Kuta, like many experts, expects lumber prices to be much higher than the average price level.
“I think lumber futures prices will continue to see severe, two-sided volatility vacillating in a more extreme price range of $550 to $1,200 for the remainder of 2021,” Kuta told Bloomberg in an email. “But any attempt to break back above the $1,000 level should be aggressively sold by lumber producers.”
Prices could have a “near-term floor around $700–$800 before moving higher again ahead of the fall construction season” due to a “very disruptive fire season,” Kuta added.
“We think 2022 spring prices will see a similar run as 2021, though likely not as high given the incremental capacity adds,” said Paul Quinn, an analyst for RBC Capital Markets. “We still expect prices will be higher than long-term averages going forward.”