An Update On Lumber And Weyerhaeuser

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About: Weyerhaeuser Company (WY), Includes: HOML, ITB, NAIL, PKB, XHB
by: Andrew Hecht
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Andrew Hecht
Commodities, long/short equity, medium-term horizon, long-term horizon
Summary

Lumber sits near the lows.

Higher rates impact new home building.

Three factors that can lift the price of wood.

WY correlated with lumber prices.

A buy on a scale-down basis.

2018 has been a year of highs and lows in the lumber market. The price of the illiquid lumber futures contract which is more of a benchmark than a vehicle for hedging, speculation, and investing