Ro-Mac Lumber & Supply, Inc.

February 2010 Lumber & Commodity Report

by Don Magruder

Since mid-January, the wood commodity markets have skyrocketed in price, and it probably represents the worst inflation in a 30-day period since the summer of Hurricane Katrina. The wood commodity index for February 2010 settled at $285.11 per thousand, which has not been that high since July 2006 - 3 ½ years ago. The amount of inflation is literally astounding, and it has occurred when housing starts for December were at almost historic lows, during the worst winter in a quarter of a century, and in an economy shrouded in uncertainty. Only a shortage of logs due to bad weather can be blamed for some of the pricing. Improved weather should bring more supply, but also more demand, so I don’t believe there will be too much easing. More...

February 2010 Whole House Commodity Index

by Don Magruder

Builders,

The Ro-Mac Lumber Whole House Commodity Index took its largest one month increase since its inception in April 2005, and is currently valued at $25,586.28 or 5.9% higher than mid-January. This is the highest the index has been since January 2007.

The Ro-Mac Lumber Whole House Commodity Index began in April 2005, and each month the company prices the base commodity items to build a 2,200 square foot wood frame home on a stem wall. The index includes the base commodities to build the home from the foundation to the roof top, but it does not include labor, décor, electrical, mechanical, plumbing and landscaping. The index is priced on current mill and wholesale pricing to give builders a sneak peek at the direction of building materials for the next 45 days. More...

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