Lumber futures may tumble as much as 25 percent from a seven-year high as output increases in Canada, the world's biggest exporter, according to Forest Economic Advisors LLC, Bloomberg reported.
The price may touch $300 per 1,000 board-feet in 2013, said Paul Jannke, a principal at Forest Economic Advisors. In mid-October, he correctly forecast the rally. Futures on the Chicago Mercantile Exchange on Dec. 26 reached $399.50, the highest since April 2005.
As the U.S. housing market rebounded, lumber prices this year have soared 47 percent, the most since 1993. That topped the 24 raw materials in the Standard & Poor's GSCI Spot gauge.
U.S. building permits, a proxy for future construction, rose to an annual rate of 900,000 in November, the highest in four years, according to government data. Read more.