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After British Columbia in western Canada entered a state of emergency due to a major storm, Chicago timber futures prices rose 6.3% on Thursday to $757 per 1,000 board feet, the highest level since October 25.

u3000u3000 It is reported that extreme flooding washed and blocked some of the province’s main roads, and Canada’s two main railway tracks were forced to close. This has left Canada's largest port in Vancouver basically stranded, unable to use trucks and trains to transport goods such as grain and timber into or out of the area. Approximately 14% of North America's wood is produced in British Columbia.

u3000u3000 Greg Kuta, CEO of Westline Capital Strategies, which focuses on timber trading strategies, said, “Timber mills are using this to raise prices and force traders to push prices up.”

u3000u3000 This is the second time that the British Columbia Railway has been damaged by extreme weather in less than five months. The railway is the main gateway to the Asian market. Wildfires and record heat waves swept the area this summer.

u3000u3000 As the storm hit British Columbia and reduced the supply of timber, timber prices are entering a period of rising, as builders are hoarding materials for the spring peak season.

u3000u3000 "The market has had a strong start this week, but now railway problems have made it crazy," said Brian Leonard, an analyst at RCM Alternatives.

u3000u3000 Resolute Forest Products (RFP.US), which operates in eastern Canada, rose sharply on Thursday. As of Thursday's close, the stock rose 7.94% to $11.97. Year-to-date, the stock has risen over 116%.