LUMBER Weekly Chart

Copper is catapulting higher and lumber is keeping pace. Lumber explodes +82% higher from 275 to 5 hundo in only 15 weeks outdoing copper. Now that is called "spankin' the plank" to steal a line from Billy Gibbons who is a very sharp-dressed man. Copper jumps on the supply shortages created by sick miners in Chile and Peru. Lumber prices leap higher over the last month as shortages hit the United States. Come on Canada! Cut those trees and send them down to your neighbors. Houses cannot be built without stick lumber available.

Actually, it is not Canada's fault. There are some big mills that have shut down or are operating at greatly reduced capacities due to the coronavirus (COVID-19). One of the largest treated lumber facilities was shut down so wood for decks and outdoor applications are as rare as hen's teeth. Comically, the husband finally has to complete the "honey-do" list including building a deck but he laments that the job cannot be started since there is no wood, hence, he goes back to laying on the couch.

Treated wood can withstand bugs, pests and rot for about 40 years depending on the application. The mills treat the wood with chemicals under pressure. If you used a regular piece of pine lumber, which is what your house is framed in, outside where it is exposed to rain, it would rot away and weaken in a year's time. Your mailbox post is treated lumber.

Keystone made the rounds at HD and LOW yesterday in search of treated lumber but came home empty-handed. If you own a stack of 4x4 treated posts (4 inches by 4 inches by 8 foot long treated lumber) you own gold. Talking to a few local contractors, they are getting up against a wall unable to complete jobs and that means they do not get paid. Contractors say they cannot take on new deck projects since there is no wood. The home building industry is facing this major issue right now. If you see any treated lumber around, be sure and let Keystone know. Fences on the property need mending.

The lumber chart is just like the copper chart. The indicators are long and strong so more highs should be coming on this weekly basis. Stochatics are overbot agreeable to a pullback for a few days but considering how dire the lumber situation is, and experiencing the angst first-hand this weekend, price may simply rocket launch to the stratosphere from here. The thin red lines show neggie d with the RSI and MACD but the price momo is so strong these will likely become long and strong today or this week. Maybe King Donnie will call Trubadour Trudeau and kindly ask our friends up north to send more finished lumber into the states. Then again, probably not. Those two do not exchange Christmas cards. Keystone is not trading lumber currently and is not in the homebuilders long or short. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

Note Added 11:08 AM EST: Lumber gains another +1.6%.