A few days ago, we wrote about how the lumber was getting slapped around pretty violently.
It’s happening again today, as lumber it’s down over 3% to $252.20 (per 1000 board feet).
Taking a look at the chart below, we can see that in the lead up to late January/early February, lumber was one of the hottest commodities around. Then in the past week, it’s fallen hard.
Lumber, obviously, is closely tied to the housing market. Perhaps we’re seeing the evaporation of the last gasps of real estate optimism.