(Bloomberg) — The times of dear lumber would possibly lastly be over.

Lumber futures are toppling to ranges not seen since November amid fears of a softening housing market and financial recession. Futures fell as little as $604.50 per 1,000 board ft in Chicago on Wednesday, extending a hunch to about 46% this yr. The commodity’s collapse is a stark reversal from all-time highs set in 2021 throughout a pandemic-fueled homebuilding increase.

“Lumber markets are probing for a flooring,” mentioned Kevin Mason, managing director of ERA Forest Merchandise Analysis, noting issues about collapsing dwelling gross sales and rising rates of interest are pushing costs decrease.

Latest feedback by JPMorgan (NYSE:) Chase  & Co.’s Chief Govt Officer Jamie Dimon aren’t serving to, Mason mentioned. Earlier on Wednesday, he warned buyers to organize for an financial “hurricane,” given challenges together with tightening financial coverage and Russia’s invasion of Ukraine.

Lumber costs might fall within the vary of $400 per 1,000 board ft within the subsequent two months earlier than producers curb manufacturing to take away extra provide, Mason mentioned.

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