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  • Writer's pictureDon Magruder

June 2024 Lumber & Commodity Report

By Don Magruder

The RoMac Building Supply Wood Commodity Index for June 2024 decreased 4.9 percent to $416.46 per thousand which marks the second straight month of declines.  The timidness in these declines indicates bottoms are probably close, and typically, this time of year is subject to the pricing doldrums as vacations take priority.  For these markets to swing up, the housing demand equation will have to improve, and with a forecasted interest rate dip in the fourth quarter of 2024, that may be sooner than later. 

The dimensional lumber portion of the Index declined 1.7 percent or about $6.87 per thousand.  Spruce was flat to down by as much as $23 per thousand.  Stud pricing was muted, but 2x4 dimensional dropped $7 to $23 with longer lengths giving up the most.  2x6 spruce was flat to down 2.7 percent.  2x4 pine pricing was up 11.7 percent while 2x12 pine was up $30 for 16-foot lengths and down $60 to $100 for shorter.  It was very mixed and made little sense except tally demand drove the pricing. 

The sheathing portion of the Index was mixed as well.  CDX pine plywood was up by $3 to down by $9 as mills searched for buyers.  OSB sheathing was down $35 to $55 per thousand as manufacturers finally capitulated to the weaker demand equation.  Open market OSB sheathing is available, and an active hurricane season could push these prices up quickly as the Big Box stores take a position. 

This market is searching for a bottom and with the real possibility the housing market could be at its bottom this month’s price capitulation will be short-term.  Lowering interest rates, an active hurricane season and a move away from the initial summer vacation blitz should firm pricing, and builders would be advised to include price escalation clauses in their contracts.  Don’t be blindsided by unknowns. 

Have a wonderful July 4th Holiday!

The RoMac Wood Commodity Index is a weighted lumber and sheathing composite based on usage in Central Florida. By using wholesale pricing, the Index is a good indicator of the pricing direction for the next 30 days.

Don Magruder is the Chief Executive Officer of RoMac Building Supply in Central Florida, he is a former president of the Southeast Mississippi Home Builders Association and a past Associate Vice President of the Home Builders Association of Lake County.

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