CME lumber end lower as cash may peak so…
CHICAGO, March 12 (Reuters) – Chicago Mercantile Exchange lumber futures closed lower on Friday despite a higher cash quote as traders continued to voice concern that cash is peaking after the recent run-up in prices.
* ‘Cash trade again turned quiet,’ one trader said.
* Much cash strength has come on fill-in business and not stronger housing industry demand.
* Limitless CME March lumber closed off $4.20 at $267.20 per thousand board feet while benchmark May was off $1.90 at $283.00.
* The March contract expires Monday.
* Futures have been slipping since active May posted a three-week high on Wednesday.
* Random Lengths quoted cash spruce at $280 per tbf on Friday, up $3 from Wednesday’s midweek quote and up $10 from last week.
* ‘Traders continued to label price trends as ‘supply-driven,’ with few noting any major increases in consumption,’ Random Lengths said. ‘Still, some mills reestablished solid two and three-week order files, as trading held steady through Wednesday before cooling off on Thursday.’
* ‘Wholesalers adopted cautious long positions, with some still wary of a pullback despite no apparent buildup of inventories in the field. Distributors quietly replaced as they moved their inventories,’ they said.
* ‘Some buyers and builders reportedly were off side, having quoted jobs based on prices that preceded the early 2010 run,’ the reporting agency added.
(Reporting by Jerry Bieszk; Editing by David Gregorio)
((jerry.bieszk@thomsonreuters.com; 312-408-8725; Reuters Messaging: jerry.bieszk.reuters.com@reuters.net)) Keywords: MARKETS LUMBER CME
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