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: A flurry of activity on Wednesday interrupted an otherwise quiet week. The midweek business was enough for mills to find a trading level, firm up pricing, and rebuild order files. Sensing that the waiting game was over, buyers jumped in to cover some upcoming needs. It is interesting to note that the previous $340 cash resistance point was the buy price trigger this week. However, by Thursday the follow through stalled and mill activity was quiet into Friday. US February housing starts were up 3% to 1.288 million units, while permits were down 6.2% to 1.213 million. The Random Length Composite Price Index fell $6 to $396.