In a nutshell: a huge advance and now what appears to be a crash (~ -50%) is currently in progress.
The bigger picture is how indicative this compressed boom-bust story is of the future of the surge in US inflation. Lumber is showing us how easy it is for the market to reject ridiculous prices. What's unclear is how low lumber, and other goods/commoditiies that have seen similar booms, can go.
This chart of lumber futures gives an idea of the recent past (zoom out 1-5 years for perspective):
<https://www.tradingview.com/chart/?symbol=CME%3ALBS1!>
In a nutshell: a huge advance and now what appears to be a crash (~ -50%) is currently in progress.
The bigger picture is how indicative this compressed boom-bust story is of the future of the surge in US inflation. Lumber is showing us how easy it is for the market to reject ridiculous prices. What's unclear is how low lumber, and other goods/commoditiies that have seen similar booms, can go.
Edit: this links seems to work better
https://www.tradingview.com/symbols/CME-LBS1%21/