More important than any crop dusting issues, the analyst said is favorable weather weighing on the market. Trade sources blamed a lack of buying interest that was tied to the Dow Junes Industrial Average for the failed rally attempt. The move was a surprise to many traders and analysts who had expected the market to continue Monday s move higher. However, since the Dow failed to register another day of sharp gains, lumber futures investors lost heart and sold short. One trade source said the lack of bullishness in lumber futures to a depressed cash market.
Mills continue to accept lower bids on product just to get something moving.
Many bullish traders who keep hoping for a cash rally point to the fact that wholesalers and retail dealers are low on inventory and should be just about ready to step back into the market to restock. Since trading resumed Monday, September 17, for the first time since last week s terrorist attack destroyed the World Trade Center, the softs markets have all been trading on a staggered basis for 90-minutes a day at the New York s Board of Trade backup facility in Long Island City. There is risk of loss in futures trading. Past results are not indicative of future results. Copyright 1999 Anne Burden.