More Lumber Research

Regular readers know that we're keeping an eye on developments in the lumber market, which is suffering from its lowest prices in decades. I got the idea from Tom Dyson at DailyWealth, and his follow up article earlier this week inspired me to do some more research on the subject.

If you're also intrigued by this opportunity, here are some other links you may be interested in:

• Elliott Wave International - this is really just an intro for an advertisement for their services, but has a few useful points
• Reuters on a recent lumber ruling
• Al.com (that's short for Alabama) - Sawmills whacked by falling lumber prices, little demand

Looks like any upturn in prices will be triggered by a drop in supply. We have a classic case setting up for this - prices below the cost of production, with many Canadian sawmills packing up shop as a result.

You've seen this script before over the past few years - supply is neglected due to low prices. Then demand picks up, and boom! You've got a jump in prices...and hopefully a big profit if you had the trade!