2×4 and 2×6 lineals are currently trading at some of their highest levels all year but there are signs pricing may fall in the fourth quarter. As the futures market closed on September 15th we saw a discrepancy between the futures price and the asking price. Future pricing of lumber was below the actual asking price of lumber and this left many retailers at a standstill. Given these mixed signals we chose not to buy September futures and instead wait until the market shows a bit more stability. As always, I will keep you informed as changes occur.
Currently, 2×6 studs are trading at a premium over 2×4 studs. This pricing is opposite of what we experienced last year and earlier this year. Studs are following the same trend with 9′ trading at a premium to 8′. The reality is that 8′ studs are simply more economical to produce than 9′ studs.
OSB pricing continues to be flat as the mills continue production at or near break-even prices. The Weyerhaeuser plant in Grayling, MI is in the midst of taking a three week maintenance shutdown which has taken a big chunk of production out of the region. In my opinion there could be a slight ‘bump’ within our region which would impact the price of shipping, but I cannot see any significant changes at this time.
Overall, it appears this year is shaping up to be very similar to 2011 and 2012. If anything pricing is slightly above last year. Everything is panning out towards the typical elevated seasonal market with a fall pullback. I wouldn’t expect any real pullback in pricing until the end of the year. Keep in contact with your sales staff for any “breaking news” but at this point we are not seeing any significant changes.