The stockpile release is the latest move out of Beijing to try and clamp down on soaring commodity prices, including a 67% increase in copper over the past year.
Inflation concerns eased as commodities including copper, lumber and nickel fell and investors waited for the Federal Reserve's next meeting.
Lumber prices are now down roughly 40% from their May 7 peak, but are still up over 175% over the past year.
After a blistering rally, lumber prices have now fallen approximately 37% from May 7 record highs of $1,670.50 per thousand board feet.
Lumber prices avoided a seventh straight day of losses after spiking positive right before 3:30 pm ET.
Coffee prices are up nearly 70% in the past year and an ongoing drought in Brazil is set to make things worse, according to a Commerzbank report.
A chinese data point that some view as a leading indicator of commodity prices just saw a steep drawdown, signaling risk for the asset class, Soc Gen said.
In the hope that a larger animal will generate higher returns if prices rebound, farmers in China have been fattening their pigs to double their weight, Bloomberg said.
"Essentially we're sleepwalking to huge deficits and scarcity. And prices will have to rise even higher than is currently our base case," Goldman said.
Lumber futures are now trading more than $200 below recent highs of over $1670 per thousand board feet.
The Nasdaq dipped Monday morning while the Dow hit records, as soaring copper and iron ore futures stoked fears over rising inflation.
Corn, copper, lumber, wheat, coffee, cotton, lean hogs, soybeans, aluminum, and iron ore are all up double digits in 2021 amid rising inflation.
"The situation is critical in Brazil. This should further strain the global balance sheet, while the U.S. will have to partly compensate," Agritel said.
Pressure is building in the markets for corn and other crops due to dry weather and rising demand.
Commodity prices are rising, and consumer-staple giants like Coca-Cola, Procter & Gamble, and General Mills are raising prices in response.
Lumber's 140% gain has outpaced every other commodity significantly over the last year, and one market technician said prices could rise 35%.