Managed Money, speculators net positions What was a short covering trade has turned into a Momentum trade as long increase along with price Increase.
And why not continue to trade Lumber from Long side today’s Housing starts number was off the charts,6-7 Standard deviation beat .I guess this demand is not priced into lumber as market is limit Bid. Below charts from BBG
From the NAHB( national association of builders) eye on housing
“Demand is being supported by low interest rates and a renewed focus on the importance of home amid the virus crisis. Single-family starts in July were estimated by Census/HUD at a 940,000 seasonally adjusted annual rate, after a revised estimate of 869,000 for June.
Consistent with recent gains in the NAHB/Wells Fargo Housing Market Index (HMI), which has risen to match a data series high of 78, single-family permits increased 17% in July. Total permits for single-family homes issued in 2020 on a year-to-date basis are are up almost 6% compared to the first seven months of 2019. The increase in the pace of permits and resurgent builder confidence signals more gains for single-family starts ahead.” More lumber used in a single family home then a multi family home just FYI