Despite Drop in Softwood Lumber Prices – Overall Construction Materials Cost Increased in October

A deeper look into the U.S. Bureau of Labor Statistics (BLS) October 2020 Consumer Price Index, with a focus specifically on construction materials and with further analysis provided by Yield Pro, reveals that construction materials were up 0.2% from September, seasonally adjusted, and up year-over-year by 4.8%. The surge in softwood lumber prices in late Q2 & Q3 of 2020 appears to have peaked, with October’s data showing a drop in prices. The price for plywood products, however, were up again in October. When compared to April 2020 prices, October 2020 prices for softwood lumber were up 42% while plywood prices were up 81%. CME Lumber Futures are currently well below their September highs but appear to have found a trading level at approximately 50% above prices levels early in the year. Other basic construction materials also increased in October.