The COVID-19 pandemic has created a housing construction boom in Australia. As a result, demand for Australian timber has soared. Much of the timber needed to meet that the growing housing demand came from sawlogs that were burnt during the summer bushfires of 2019–2020.
Wood Markets News
National Nonresidential Construction Declines 1.1% in March
According to Associated Builders and Contractors (ABC) analysis of data published by the U.S. Census Bureau, national nonresidential construction decreased 1.1% in March. On a seasonally adjusted annualized basis, nonresidential spending totaled $778.5 billion in March.
ADP Reports Private Sector Employment Increased by 742,000 Jobs in April
According to the April ADP® National Employment Report™, nonfarm private sector employment private sector employment increased by 742,000 jobs from March to April. The ADP National Employment Report is produced by the ADP Research Institute® in collaboration with Moody’s Analytics.
Mortgage Applications Decline for Second Consecutive Week in the Week Ending 30th April 2021
According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey for the week ending April 30, 2021, the Market Composite Index, a measure of mortgage loan application volume, decreased -0.9% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased -1% compared with the previous week.
Wildfire Timber Salvage Operation Winding Down in NSW Australia
State-owned Forestry Corporation of NSW Australia has announced that starting July 1, 2021, there will be a ‘significant’ decrease in the volume of timber it can supply to AKD and Hyne timber mills. There will be no change to what is supplied to Visy, due to the age profile of what was affected by the fire.
Improved Homes For Sale Listings in April Still Cannot Keep Up Soaring Demand
Realtor.com is reporting that the number of new homes for sale rose in April 2021, compared to last year, when most cites had shelter-in-place orders in effect. Nevertheless, the number of new listing is still nearly 26% below pre-pandemic levels.
With Volatility Checks Removed, May CME Lumber Future Contract Moves to Historic Levels
CME Lumber Futures soared to new historic heights on Monday and Tuesday. With the May contract set to expire on Friday, May 14, 2021 at Noon (CDT), the limits on trading, which are set to hold volatility in check, have been removed for the final days of the contract.
Canadian Housing Industry Hits Third Consecutive Month of Record Setting Numbers
Led by a surge in residential building permits, Statistics Canada (StatsCan) is reporting that March 2021 marked the third consecutive month of recording setting numbers in the Canadian housing industry. Building permits rose 5.7% to $ 10.9 billion. The residential sector climbed 15.9%, clearing the $8.0 billion mark for the first time in March.
Shares of Mortgages in Forbearance Decline for Ninth Straight Week in Week Ending April 25, 2021
The latest Mortgage Banker Association’s (MBA) Forbearance and Call Survey reports that the total number of loans now in forbearance decreased by 2 basis points from 4.49% of servicers’ portfolio volume in the prior week to 4.47% as of April 25, 2021. According to MBA’s estimate, 2.23 million homeowners are in forbearance plans.
Weyerhaeuser Completes Purchase of 69,200 of Alabama Timberlands and Announces the Sale of 145,000 Acres in the North Cascade Region of Washington State
Weyerhaeuser Company announced on Friday (4-30-21) that earlier in the week they had completed the acquisition of 69,200 acres of high-quality Alabama timberlands from Soterra, a subsidiary of Greif, Inc., for approximately $149 million. Separately, the company announced an agreement to sell 145,000 acres of timberlands in the North Cascades region of Washington to Hampton Resources for $266 million.