Lumber futures for delivery in July hit a limit down following the recent pullback in prices, CNBC reported.
- Data from the Chicago Mercantile Exchange showed that futures fell 5% to $1,201 per thousand board on Wednesday morning.
- Futures rallied 5% later in the afternoon after hitting the limit down price change of $63 or the cap or percentage changes allowed by the exchange.
- Prices have fallen for the last eight trading days since falling to a record of $1,711 per thousand board feet on May 10.
- A commodities broker said demand is being stifled by prices and inventories priced high are not being added.
- The broker believes the market will see a dead cat bounce as it was overbought when futures hit $1,733.
- Housing starts for single-family units plunged 13% in April to mark the biggest drop since the COVID-19 pandemic hit.
CME: Nasdaq is up 1.36%