Soybean oil traded in Chicago is up 27% in 2019, heading for the largest increase since 2010. Palm oil traded in Malaysia jumped about 47%.
Lumber
Lumber prices had a bit of a roller-coaster ride in 2019. First, Chicago futures fell as much as 15% to this year’s low of $286.10 per 1,000 board feet in late May. The wet spring caused U.S. housing starts to tumble, while producers in Canada’s British Columbia were struggling to manage supplies.
Tides turned when lumber companies finally curbed production, while U.S. housing starts rebounded. Prices are now on pace for an annual gain of 27%.
The rally is expected to continue in 2020. The Canadian curtailments will keep supplies tight in North America, said Kevin Mason, managing director of ERA Forest Products Research.
“It’s going to be definitely a much stronger market,” Mason said.
This article was provided by Bloomberg News.