CHICAGO, Oct 22 (Reuters) - Chicago Mercantile Exchange lumber futures closed mostly lower on Thursday as slow cash sales continued to keep pressure on the market, traders said.
* The November futures are about $20 discount to cash prices, but CME traders have said the futures reflect where cash prices will eventually be amid the slow demand.
* November lumber closed off 40 cents at $174.50 per thousand board feet and January off 70 cents at $194.00.
* Home building is a major user of lumber but that business remains slow due to tight credit and high unemployment.
* Earlier this week the U.S. Commerce Department reported housing starts in September were at an annual rate of 590,000 units, compared with the average forecast of 610,000 units. Also, August's starts were revised down to 587,000 units.
* New building permits unexpectedly fell 1.2 percent to an annual pace of 573,000 units in September. The biggest percent decline since April.
* On Wednesday, the closely watched Random Lengths cash lumber report quoted cash spruce, on average, at $195 per tbf, unchanged from Friday, but up from $180 a week earlier.
(Reporting by Bob Burgdorfer; Editing by Marguerita Choy)
((bob.burgdorfer@thomsonreuters.com ; +1 312 408 8723; Reuters Messaging: bob.burgdorfer.reuters.com@reuters.net)) Keywords: MARKETS LUMBER CME (For help: Click 'Contact Us' in your desk top, click here or call 1-800-738-8377 for Reuters Products and 1-888-463-3383 for Thomson products; For client training: training.americas@thomsonreuters.com; +1 646-223-5546) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
* The November futures are about $20 discount to cash prices, but CME traders have said the futures reflect where cash prices will eventually be amid the slow demand.
* November lumber closed off 40 cents at $174.50 per thousand board feet and January off 70 cents at $194.00.
* Home building is a major user of lumber but that business remains slow due to tight credit and high unemployment.
* Earlier this week the U.S. Commerce Department reported housing starts in September were at an annual rate of 590,000 units, compared with the average forecast of 610,000 units. Also, August's starts were revised down to 587,000 units.
* New building permits unexpectedly fell 1.2 percent to an annual pace of 573,000 units in September. The biggest percent decline since April.
* On Wednesday, the closely watched Random Lengths cash lumber report quoted cash spruce, on average, at $195 per tbf, unchanged from Friday, but up from $180 a week earlier.
(Reporting by Bob Burgdorfer; Editing by Marguerita Choy)
((bob.burgdorfer@thomsonreuters.com ; +1 312 408 8723; Reuters Messaging: bob.burgdorfer.reuters.com@reuters.net)) Keywords: MARKETS LUMBER CME (For help: Click 'Contact Us' in your desk top, click here or call 1-800-738-8377 for Reuters Products and 1-888-463-3383 for Thomson products; For client training: training.americas@thomsonreuters.com; +1 646-223-5546) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.