This week’s episode breaks down a confusing lumber market where price prints don’t reflect reality. Southern Pine appears to be selling off, but much of the move is driven by rising and volatile freight costs rather than true demand weakness. Inventory remains tight in many regions, while buyers hesitate due to bearish sentiment and futures discounts. Meanwhile, multifamily construction continues to support demand, even as overall housing trends flatten. The result is a fragmented, regional “island market” where logistics—not supply—are dictating price.

0:00 – Market Setup: Weak tone on paper, post-Montreal reset

2:00 – Pine Selloff = Freight Story: Prices down, driven by trucking costs

5:00 – Cash vs Futures Disconnect: Strong Western pricing vs discounted board

10:00 – Supply Constraints: Euro down, Canada tight, limited new supply

15:00 – Housing Demand: Flat overall, multifamily supporting pine

20:00 – Fragmented Market: Regional “islands,” no easy arbitrage

25:00 – Relative Value Trades: 2x6 vs 2x4 spread, board looks cheap

30:00 – Buyer Behavior Shift: Late buying driving higher freight

35:00 – Key Takeaway Trades: Futures and select items show opportunity

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Fastmarkets RISI

Dustin Jalbert

Senior Economist Wood Products

djalbert@fastmarkets.com

www.fastmarkets.com

Show Contacts:

Gregg Riley: Gregg@sitkainc.com

Charles DeLaTorre: cdelatorre@ifpwood.com

Matt Beymer: mattbeymer@hamptonlumber.com

Ashley Boeckholt: ashley@sitkainc.com