Lumber prices avoid 7th straight decline with late-day surge as the commodity's blistering 250% rally whipsaws

Worker loading lumber — Josef Mohyla/Getty Images

Lumber prices avoided a seventh straight day of losses on Wednesday after spiking into positive territory right before 3:30 pm ET.
Prior to the surge, the commodity fell 2.41% to trade at $1,237 per thousand board feet.
Despite recent weakness, prices are still up roughly 250% since this time last year.
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A late-day surge helped lumber prices avoid a seventh straight daily decline as the commodity's blistering 250% rally over the past year whipsaws.

Prior to the recovery, lumber futures traded down 2.41% to $1,237 per thousand board feet on Wednesday. Despite the rebound, the commodity is still down roughly 20% from its May 7 record high of $1,670.50 per thousand board feet.

As lumber prices fluctuate, local news outlets continue to reveal the effects of historically high lumber prices on consumers.

ABC's Louisville outlet reported the story of Kenny Marine, the founder of Kentucky Hot Brown Pedalboards, who says his costs have more than doubled since last year.

"Something last year that cost me $12, $14 is costing me $30, $35, $60 in some cases depending on what wood I buy, and that's the killer right there," Marine told ABC.

CBS's affiliate KXAN in Williamson County, Texas, reported that the construction of a new county-run children's advocacy center is on hold due to increasing construction costs brought about by the spike in lumber prices as well.

Republicans have used rising lumber prices and inflation concerns as political tools to attack President Biden's administration.

Rep. Bob Gibbs, R-Ohio, who serves on the House Oversight Committee's environment subcommittee, told FOX Business that increasing lumber prices are "just one of the many indicators that President Biden is failing American workers."

"Lumber prices are an issue that has many causes, from economic complications from the coronavirus pandemic to difficult trade issues with Canada. Biden has shown he is either unwilling or incapable of tackling these obstacles," Gibbs told FOX Business.

The representative is referring to a proposed tariff hike on imports of Canadian softwood lumber. The US Commerce Department recommended doubling tariffs on Canadian softwood to 18.32% from 8.99% just two weeks ago despite rising lumber prices.

However, it's important to note a similar tariff was originally imposed by the Trump administration before a decision favoring Canada by the World Trade Organization caused the tariff to fall to around 9% late last year.

Read the original article on Business Insider