Wood, Corn, and Copper Prices Soaring for Days Peak and Begin to Decline

Wood Supply Shortage Eases by 40% Compared to Previous Month

[Asia Economy Reporter Cho Hyun-ui] Lumber prices, which soared last year due to the COVID-19 pandemic's tailwind effect, have recently turned downward.

On the 14th (local time), lumber futures prices closed at $996.20 per 1,000 board feet (bf) at the Chicago Mercantile Exchange (CME) in the United States. This is a 5.95% drop compared to the previous trading day.

Lumber futures prices reached an all-time high of $1,706 per 1,000 bf on the 10th of last month. Bloomberg News explained, "It has fallen 40% compared to last month's peak."

Forty percent of lumber consumption is used in the home repair and remodeling market. Last year, workers who began working from home due to COVID-19 used their spare time to improve or renovate their homes, causing lumber prices to surge.

However, as supply shortages improved, lumber prices shifted to a downward trend. Bloomberg News stated, "While sawmills increased production, consumers held back purchases, causing lumber futures prices to fall 18% compared to the previous week," adding, "This is the largest weekly drop in 35 years since 1986."

Corn prices hit their lowest level since April. On this day, corn futures prices at the Chicago Board of Trade (CBOT) recorded 659.20 cents per bushel.

Expectations for economic recovery have also caused copper prices, which approached an all-time high of $11.9 million, to stall. At the London Metal Exchange (LME), copper spot prices surpassed $10,000 on April 29 and maintained an upward trend until early this month but closed at $9,977.73 on this day.