Wood prices tumble, raising alarm for housing market and broader economy.

Wall Street Journal reports on lumber slump signals housing and economic risks as futures plunge 24% from August highs.

Lumber prices have slumped sharply, raising concerns on Wall Street about the health of the housing market and broader economy. Futures have tumbled 24% since early August, when they touched a three-year high, settling at $526.50 per thousand board feet on Monday. The decline was partially cushioned after two of North America’s largest sawmills said they would scale back production.

Wood prices are seen as a leading indicator of housing demand and economic momentum, making the current downturn a troubling signal for Main Street.
 

Source: Wall Street Journal