CME lumber end lower as lumber trade stays slow
CHICAGO, May 14 (Reuters) - Chicago Mercantile Exchange lumber futures closed lower on Thursday amid further pressure attributed to slow lumber sales, traders said.
* New home sales, the largest user of lumber, remain slow and the trend is seen continuing into the year as foreclosures and low-priced used homes flood the market.
* Limitless May lumber 2LBK9 closed off $1.30 per thousand board feet at $153.00 ahead of its expiration on Friday. July 2LBN9 was off $5.90 at $177.60 and September 2LBU9 off $3.60 at $192.00.
* Recent higher cash quotes were mostly due to increased mill asking prices and not demand, traders said.
* Random Lengths on Wednesday quoted cash spruce at $164, up $8 from Friday and up $14 from a week ago. Random Lengths will update that price early on Friday.
* "Many traders were discouraged by the market's lack of energy in advance of a traditionally busy holiday. Although retailers maintained thin inventories, they limited purchases to highly specified loads, confident that they could readily find replacement stock when needed," Random Lengths said.
* "Many mills were open to small counters, even as they viewed current prices as unacceptable. A few key prices bucked the broader trend. Western S-P-F (spruce-pine-fir) rose ahead of the May futures contract close," the reporting agency said. (Reporting by Jerry Bieszk; Editing by David Gregorio)
