The latest Producer Price Index (PPI) release by the Bureau of Labor Statistics revealed that the prices for the building materials softwood lumber, OSB, gypsum products, and ready-mix concrete all fell during October. Eye on Housing staffer David Logan takes a look at the declines for these materials, specifically pointing out the decline OSB (0.7%) as paltry following a cumulative 25% price increase since February.
Logan also looks at the strength of the U.S. dollar in comparison to the Canadian dollar, and what that may mean for softwood lumber:
...and further currency appreciation appears on the horizon as Federal Reserve officials signal that they will raise the U.S. benchmark interest rate in December. A strengthening U.S. dollar makes Canadian softwood lumber cheaper to import, which may prove increasingly important as softwood lumber litigation picks up in an uncertain international trade environment.