Experts Begin Speculating What Lumber Prices Will Do By Year's End

Experts are like baseball players. If they are correct 30% of the time, people see them as the people to follow. Too bad they don't have their own baseball-type cards.

Here are what some of those experts are saying this week about the lumber futures:

• Lumber prices could be due for a sharp fall when supply ramps up, according to Capital Economics commodities analyst Samuel Berman.
• “All told, we forecast that the price of U.S. lumber will plummet to $600 and $550 per 1,000 broad feet by end-2021 and end-2022, respectively, as domestic supply surges and imports remain strong,” Burman wrote in a note, according to Bloomberg.
• But RBC analyst Paul Quinn is looking for futures prices to remain above $1,000 until at least late July.
• Overall, "market participants continue to have a favorable outlook for pricing levels given strong demand, low inventories, and the inability for supply to catch-up in the near-term," he wrote, Bloomberg reported.

It really doesn't matter if they are correct or not. If they bat .300 overall, we'll keep listening to them. Whose cards do you collect?

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Gary Fleisher is the Managing Director and contributor to the Modcoach Network and its affiliated blogs. Email at modcoach@gmail.com

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