Why is Lumber Stuck in Neutral?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 04 2024
0mins
Source: NASDAQ.COM
Lumber Futures Market Trends:
- Lumber futures market is in a bearish trend in May 2024.
- The market is influenced by the Fed's monetary policy path.
- Trading ranges have narrowed, signaling consolidation.
- Low liquidity in lumber futures can lead to extreme price swings.
- Interest rates play a significant role in determining lumber prices.
Market Analysis:
- Nearby July physical lumber futures are at $538.50 per 1,000 board feet.
- Lumber has been stuck in a sideways range between $500 to $550.
- Lumber remains illiquid, leading to challenging trading dynamics.
- Alternative assets like WY, WOOD, and CUT offer more liquidity.
- Potential for explosive price action when lumber prices move.
Analyst Views on WOOD
Wall Street analysts forecast WOOD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for WOOD is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
0 Analyst Rating
0 Buy
0 Hold
0 Sell
Current: 76.769
Low
Averages
High
Current: 76.769
Low
Averages
High
No data
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
