As economies battle to get better within the pandemic and U.S.-China tensions flare, traders piling into treasured metals could also be overlooking one other potential haven: wooden.
Lumber futures have doubled since early April and are the top-performing main uncooked materials this 12 months. Surprisingly, wooden is even outshining gold and silver, historically the go-to haven commodities.
Whereas lockdowns and stay-in-place restrictions had been anticipated to curb demand for constructing supplies, North Individuals caught inside determined to spend cash and renovate their properties simply as aggressive manufacturing cuts tightened provides.
To make certain, lumber trades at a lot decrease quantity than gold and different metals and is vulnerable to wild worth swings. However producers akin to Canfor Corp. count on robust demand and costs will proceed into early fall.
“The house-center demand has been so robust in comparison with what anyone would’ve anticipated,” Canfor Chief Govt Officer Don Kayne mentioned Friday on the corporate’s quarterly earnings name.