Lumber prices in the US have risen recently, reaching $614.50 per 1,000 board feet as of January 20, 2026, up 12.86% over the past month. This uptrend follows a period of quarterly fluctuations but continues a year-over-year increase driven by supply constraints and improving demand. Higher US tariffs on Canadian softwood lumber imports, now over 35% under the Trump administration, have increased landed costs and prompted mill closures and production cuts in Canada and the southern US. These duties exacerbate structurally lower harvests and limited domestic capacity, reducing overall availability despite US efforts to boost logging. Buyers are front-loading orders to avoid further tariff risks, tightening supply further. In addition to the above, 30-year mortgage rates have fallen, boosting housing demand somewhat. Still, considering WEF's small size, weak history and economic sensitivity, we would be inclined to sell. With US policies right now, we would not expect the sector to see a huge boost from here.
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