Bubble warnings have been getting louder and louder in the markets during this historic year, and one seems to have burst at the end of the first half.
Lumber prices have come back down to earth after a jaw-dropping rally this spring. The price of lumber futures plunged more than 40% in June alone, suffering its worst month on record dating back to 1978, as supply and demand balanced and speculative trading action cooled.
Just on May 7, lumber prices soared to a record high of $1,670.50 per thousand board feet on a closing basis, more than six times higher than their pandemic low in April 2020.
The quick reversal of lumber's months long rally came as Americans started to go on vacations again amid the economic reopening.
“This news is sourced from CNBC”
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