A combination of the distress in the financial system and traders' own bleak outlook for the coming months left trading in framing lumber at an extremely low level. Prices fell unevenly as drops in those species that took hefty hits in previous weeks eased, while cuts in other species accelerated. Uncertainty about whether the House would pass a new version of the financial rescue package left financial markets jittery. Worries about credit and lack of confidence on Wall Street were widely reflected in the lumber market as well.

Panel market

Structural panel markets weakened. Tepid OSB sales left order files eroding and prices under pressure. Traders' moods were glum. Southern Pine sheathing prices tumbled in all zones. Price cuts were sharpest on the westside, where key items fell $25-40, and blocks often moved at deeper discounts. With order files running thin, western Fir plywood mills discounted sheathing and underlayment. The lower quotes helped spur limited sales and extend shipment times into next week.