Vince Bulic’s Weekly Lumber Market Wrap: For the week ending July 18, 2014

Vince Bulic is the President of Yaletown Lumber Industries Ltd – a Vancouver based wholesale lumber company specializing in commodity Western SPF products. Vince has 20 years of experience trading Western SPF lumber and enjoys the dynamic nature of the market and analyzing the different factors that influence trading activity. The Weekly Market Wrap is compiled to provide a quick overview of the North American lumber market (both cash and futures) from a Canadian and Western SPF perspective along with a discussion of the markets future potential direction.

Cash: The stand-off has begun. Mills rested on order files and saw little business this week, while buyers nervous of current price levels sat back to wait comfortable in their ability to cover any immediate needs in the secondary market. Wednesday saw the homebuilder’s confidence index bump up 4 points to 54, but Thursday housing starts report for June was dismal – starts were down 9.3% to 893,000 units while permits were down 4.2% to 963,000. The lumber composite index gained $2 to $381.