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A truck fully loaded with lumber makes its way through Burns Lake and past an abandoned restaurant December 5, 2012.
A truck fully loaded with lumber makes its way through Burns Lake and past an abandoned restaurant December 5, 2012.
(John Lehmann/The Globe and Mail)

SCOTT BARLOW

If U.S. housing’s back, where is lumber?

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It is becoming increasingly difficult to square the sharp drop in lumber prices with the ongoing surge in U.S. home-builder stocks. U.S. housing sector fundamentals remain encouraging but the odds of disappointment appear to be rising along with U.S. mortgage rates.