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Lumber Futures Rise As China Imports More (CUT)

May 8, 2012 4:00 PM EDT
Lumber futures bucked the downward trend in commodities today, rising 3.6 percent. The price of lumber moved on news out of China's customs agency that the department imported 5.1 percent more in total lumber in the first quarter of 2012 vs. the same quarter in 2011.

"Decreasing inventories brings in a good sign for importers who are starting to place new orders with the prospects of better sales later in May, said Jane Guo, Manager of the China Bulletin in Beijing. "On the other hand, however, Chinese importers are still very cautious of the coming months in the market, so it is expected that the market recovery is still uncertain."

Despite the rise in lumber prices, shares of Weyerhaeuser Co. (NYSE: WY) and other lumber companies were down today.

Guggenheim Timber (NYSE: CUT), an ETF which tracks stocks from the universe of global timber companies, is down 0.85 percent today.


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