Buyers are leery after they experienced one of the most volatile years in lumber market history. In the beginning of 2018, the lumber market was on fire and prices skyrocketed. Prices plummeted the third and fourth quarter, leaving smoldering ashes of any profits experienced earlier in the year.
The market shift was so significant that some in the industry were left completely gun shy to buy any material. The fear was that anything bought today would be worth less tomorrow. This has left many lumber traders, buyers and mills cautious. (It feels like each step taken in the lumber market today looks like David Carradean walking across rice paper.)
General consensus among most lumber traders and reports are that prices will continue to trend in an upward motion. How much momentum will be attached to this direction is what everyone will be carefully monitoring while keeping mill curtailments, weather, Washington, transportation, housing starts and the U.S. Economy on the radar.