How long does it take?

[jerrob]

How long does it generally take for lumber future prices to make their way down to retailer's shelves?
With three spikes over $1300/1K BF in the last 6 months and then a steady trend down to under the $600 mark, what gives?
I get it, doesn't happen overnight, but I'm seeing the most modest price reductions at big box stores and local lumber yards alike. I've been told they hold on to the higher prices until it sells and they restock at the lower price. I would possibly believe that if they weren't constantly out of stock of basic building materials so often.
So what say you guys that paid attention in economics? Help an INGO brother understand.
.................and thanks for listening to a tight-ass that has a lot of lumber to purchase.

 

[boogieman]

My guess would be that they have pre-bought the lumber at the higher price and even though they haven't received it yet, now need to sell it at the higher price or lose their butts on it.

 

[Ingomike]

My guess would be that they have pre-bought the lumber at the higher price and even though they haven't received it yet, now need to sell it at the higher price or lose their butts on it.

Bought on futures. If all of them did they hold the price until they get the cheaper inventory. It will work if no one breaks ranks, which it is unlikely anyone will…