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What is happening in "the pit"

Yesterday, in the Chicago Lumber trading pit ... the carnage continued

May futures opened up $48 (the limit) and then proceeded to $1600 a contract (up $148)

A year ago, a contract was $395

At noon, one buyer was desperate to buy 60 railcars of lumber (about $12m)

In the entire US ... only 1 railcar was offered for sale

This came on top of Weyerhauser announcing they would stop accepting orders till August

Right now ... lumber is approaching the price of silver
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geoam1 · 51-55, M
New home prices are going to soar too
[@15676,jackson55] i am seeing that in 3 states ... good point ... maybe the most important
jackson55 · M
[@6757,questionWeaver] It’s people baling out of California here.
[@15676,jackson55] whoa!!
jackson55 · M
Some of the builders here have started using steel studs.
[@112526,carpediem] sheathing will be the big problem
carpediem · 61-69, M
[@6757,questionWeaver] we use fire rated plywood under aluminum composite on many projects. The cost is crazy. Switching to densglass with metal strapping. But can't do that for a residential roof
keeper · 41-45, M
[@112526,carpediem] We are already offering the denglass as a VE wall sheathing option - and it's saving money lol
keeper · 41-45, M
There has to be some type of reaction other than full speed ahead.

At what point do the low interest rates stop offsetting the large increase in material goods cost? For example, our clients are incurring $3-5 million dollar increases (lumber costs) for upcoming large multi family projects versus when they were originally bid pre-Covid.

Do investors/builders start to sit and wait it out?
carpediem · 61-69, M
[@773924,keeper] And where I live, the municipalities are compounding the pain by taking forever to issue permits. Consulting engineers are geared towards dragging out the process because every time they come up with a problem, they earn more fees. Storm water management has taken on a life of its own becoming a MAJOR expense. And hopefully you don't need to modify state highway access! The DOT takes 8 months to even LOOK at any sort of a project no matter how small in scope.

Things are a mess.
keeper · 41-45, M
[@112526,carpediem] Yessir - I have 3.5 mil underground SWM detention system on my next one 🙄 (along the coast)

So much fun
[@773924,keeper] love underground storm water management systems (laughing)

I feel your alls pain!

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