Lumber prices are soaring to levels not seen in seven months as the lingering effects of flooding in B.C. disrupt supplies and shipments.

Lumber futures jumped 3.8 per cent to the exchange limit of US$1,219 per 1,000 board feet in Chicago on Thursday, touching the highest price since June 7. Prices have been climbing since record rain hit B.C. in November, damaging highways and rail lines, and forcing sawmills to temporarily shutter operations. Persistent supply logjams and strong demand are fuelling the rally.

The surge adds to swelling homebuilding costs when consumers are already paying more for goods ranging from food to fuel. Soaring lumber prices in the past four months have boosted the price of an average new single-family home by more than US$18,600, according to the U.S. National Association of Home Builders.

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