Lumber Firm Sees Shipments Plunge on Canada Floods
Comment of the Day

December 01 2021

Commentary by Eoin Treacy

Lumber Firm Sees Shipments Plunge on Canada Floods

This article from Bloomberg may be of interest to subscribers. Here is a section:

British Columbia on Monday extended a state of emergency and fuel rationing until mid-December as it braces for more heavy rain. Parts of the province are still struggling with damage from floods and landslides that closed highways and railways two weeks ago, sharply reducing the flow of goods like grain and lumber to Canada’s biggest port in Vancouver.

Rainfall warnings are in effect for Vancouver, with Environment Canada forecasting a prolonged period of heavy rain through Wednesday. Total rainfall of 60 millimeters (2.4 inches) is expected over the region, and rising freezing levels and snow melt may contribute to increased runoff.

Eoin Treacy's view

Lumber supply was a major issue in the early part of the year and prices spiked to previously unimaginable levels. That cut into demand with many projects delayed while simultaneously encouraging additional supply into the market. It was a perfect example of the commodity market adage “the cure for high prices is high prices”.

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