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- Supply chain management has had to deal with numerous issues over the last couple of years, as both consumers and companies have had to navigate a complicated COVID-related environment.
The prices of commodities (in generally) have risen, despite there have been some huge fluctuations.
Today we’ll examine a product that has a significant function for consumers as well as the equities market too – wood. When lumber prices are at their highest construction and new homes are priced higher.
Below is a weekly chart of prices for lumber. As you can see, there are instances when the peak and bottom of a lumber was crucial to stocks ( S&P 500 Index). The prices of lumber have recently risen and are now back at their 61.8 Fibonacci retracements of the last year’s high low at (1) and are now believed to be reversing.
Stock bulls may hope that the lumber market doesn’t end up reaching its peak in price at (1). Keep an eye out
