Trump's building promises boost prices of lumber

Washington

THE lumber markets are off to a robust start in 2017, as US housing data show that the number of new homes available - along with the sale of new homes - are rising, according to the National Association of Home Builders. Home builders are employing more people and their purchasing orders of raw materials are increasing, particularly in lumber.

Lumber futures prices on the Chicago Mercantile Exchange have been rising and could surpass their recent highs in late February.

Technical assessments of the monthly trends in random length lumber, strengthen this argument. The trend definitively points upwards.

There are also fundamental reasons why lumber continues to look attractive. First, US mortgage rates, while rising, are still close to historic lows. As at March 30, a 30-year fixed mortg…