UPDATE: West Fraser Timber Down 2% Amid Reports Lumber Prices May Tumble
West Fraser Timber Co Ltd (WFT.TO) may be a stock to watch as Bloomberg cites Forest Economic Advisors LLC as saying that lumber futures may tumble as much as 25% from a seven-year high as output increases in Canada, the world's biggest exporter. WFT rose in the early minutes of today's session to as high as $71.90 but it soon turned negative and is now down more than 2%.
The price may touch US$300 per 1,000 board feet in 2013, Paul F. Jannke, a principal at the consulting company, said in a telephone interview on Dec. 27. In mid-October, he correctly forecast the rally. Futures on the Chicago Mercantile Exchange on Dec. 26 reached $399.50, the highest since April 2005.
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