Lumber Prices And WOOD

(8min)

Summary

  • WOOD ETF offers a favorable risk-reward setup, with technical support at $66.25 and stops recommended below $65 per share.
  • Lumber futures have outperformed WOOD in 2025, but WOOD remains a strong proxy for lumber exposure, especially after recent price weakness.
  • Bullish factors include lower inflation, potential rate cuts, and increased wood demand from rebuilding efforts; bearish risks stem from high U.S. debt and elevated rates.
  • Despite recent underperformance, I view WOOD as a buy at current levels, with scale-down buying on dips and tight stop management.
  • Looking for more investing ideas like this one? Get them exclusively at Hecht Commodity Report. Learn More »

Mortise and tenoned lumber.

Susumu Yoshioka/DigitalVision via Getty Images

In a January 14, 2025, Seeking Alpha article on lumber and the WOOD ETF, I concluded:

WOOD’s twenty-year monthly chart shows that technical support is at the September 2022 $63.78 low, with resistance at the May

The Hecht Commodity Report is one of the most comprehensive commodities reports available today from a top-ranked author in commodities, forex, and precious metals. My weekly report covers the market movements of over 29 different commodities and provides bullish, bearish, and neutral calls, directional trading recommendations, and actionable ideas for traders and investors.

This article was written by

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Andrew Hecht is a 35-year Wall Street veteran covering commodities and precious metals.

He runs the investing group The Hecht Commodity Report, one of the most comprehensive commodities services available. It covers the market movements of 20 different commodities and provides bullish, bearish and neutral calls; directional trading recommendations, and actionable ideas for traders. Learn more.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

The author always has positions in commodities markets in futures, options, ETF/ETN products, and commodity equities. These long and short positions tend to change on an intraday basis.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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