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September 2025 Lumber & Commodity Report

  • Writer: Don Magruder
    Don Magruder
  • Sep 19
  • 2 min read
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By Don Magruder


After an August break, the RoMac Building Supply Wood Commodity Index (Index) for September 2025 decreased for the 2 months by 10.1 percent to $345.57 per thousand as the markets capitulated to the North American housing demand equation. Housing starts in America for August were down 8.5 percent from July, while Canadian housing starts dropped a whopping 18 percent.  The trade tension and housing economies in both countries are creating significant headwinds for wood commodities. Closer to home in Florida, per the Florida Realtors, closed sales in July were down 2.8 percent, with the average home price declining 1.7 percent as inventories increased 22.7 percent to 5.4 months.


The Dimensional Lumber portion of the Index was down 11.0 percent to $429.07, and the declines were across all species. 2x4 pine dropped 7.0 percent while 2x12 pine was flat to down 1.6 percent. 2x4 spruce dropped 10.1 to 22.6 percent depending on length, while 2x6 spruce declined 14.2 to 17.3 percent. Weak demand and plentiful supply, along with declining expectations, were just too much.


The Sheathing Portion of the Index declined 8.9 percent to $283.17 per thousand, and heavy drops in OSB fueled this decline.  OSB sheathing dropped $45 per thousand or an average of 19.0% while CDX pine added $17 to $24 per thousand or less than 5 percent. The OSB manufacturers have held on to hope for most of the summer, and they briefly saw numbers rebound; however, this latest downward articulation may force some to rethink their strategies.


Despite the tariffs and higher costs being incurred by manufacturers and distributors at all levels of the supply chain, wood prices are down, which demonstrates the dismal nature of the housing market over the last couple of months.  Hopefully, a .25-point reduction in interest rates will fuel some increased demand, but many believe it will take more than this. 


Once again, these numbers reflect a two-month period since July. 


Best advice is to hold on and watch football.  


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 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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