Lumber futures prices edged higher to $560 as hedge funds

Lumber futures prices edged higher to $560 as hedge funds add positions, betting on extended demand into summer. The spread between spot and futures reflects anticipated tightening in supply. While there are numerous U.S.-based timber and lumber producers, these tariffs will still be passed on to consumers, as furniture makers and other businesses will have to pay more for imported wood. These popular home items and upgrades can get pricier under Trump's tariffs . It also puts more strain on U.S. timber companies to meet the needs of American businesses that use wood. The use of domestic lumber has decreased over time due to the affordability of imported timber. Much of the lumber produced in the U.S. is shipped to other countries as well, and placing a tariff on those places will likely affect their choice in dealing with the U.S. in trades — meaning the lumber companies in the U.S. could face a decline in exports and, thus, a need to increase pricing even more. Many home builders, contractors and retailers wagered that higher U.S. tariffs on imports would boost the cost of lumber, while lower interest rates would lift demand for the building material. Lumber futures prices surged past $565 intraday as traders priced in stronger seasonal demand. The CME contract is showing increased open interest, suggesting more speculative capital entering the market.