October 2025 Lumber & Commodity Report

By Don Magruder

New tariffs on Canadian lumber and continued mill curtailments and closures reversed last month’s gains in the wood commodity markets despite continued unimpressive housing numbers nationally and in Florida.  For October 2025, the RoMac Building Supply Lumber and Commodity Index (Index) increased 6.2 percent to $366.94 per thousand, with both dimensional lumber and sheathings increasing in price. There is a continued belief that these markets are at or near the bottom, and continued time at these levels will only encourage additional reductions in capacity. 

The dimensional lumber portion of the Index increased 10.6 percent, which is in line with the new tariffs on Canadian lumber. Reduced supply from Canada and Europe puts more pressure on pine, which has also increased. Spruce studs were flat to plus 6.4 percent depending on length, while dimensional 2x4 spruce increased - 3.6 to 24.6 percent depending on length.  Oddly, the short lengths had the most significant increases.  2x6 spruce pricing increased 21.0 to 26.2 percent as they were harder to source.  Inventory at ground level is reported to be very low, which will encourage price volatility in specific lengths. 

The sheathing portion of the Index was up 1.2 percent to $286.52 per thousand as OSB sheathing rebounded a firm $10 per thousand or about 5 percent depending on thickness.  OSB sheathing numbers remain at very depressing levels, which could force more supply capitulations on the mill side. CDX pine pricing drifted downward 3.4 percent as those mills searched for buyers. While markets can certainly go down, the price levels for both OSB and CDX are very low, and mills will be forced into curtailments if improvements are not forthcoming as we enter the holiday season. 

Most builders, mills, and dealers need the chaos and uncertainty in Washington, D.C., to settle along with interest rate reductions. Inflation fears and political strife could make both objectives hard to achieve as the holidays approach. Builders should be cautious about pricing long-term projects at these current numbers, as many believe the full impact of tariff increases and supply curtailments has not been fully integrated into the markets. 

Happy Halloween to everyone. Let’s hope the housing market doesn’t become scarier in the next month.   

The RoMac Wood Commodity Index is a weighted composite of lumber and sheathing based on usage in Central Florida. By using wholesale pricing, the Index serves as a reliable 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 Southeast Mississippi Home Builders Association president and a past Associate Vice President of Lake County Home Builders Association.

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