We saw increased pressure on commodity supply as we progressed through the second quarter and into July. The combination of mill curtailments and mill shutdowns early in the outbreak along with stronger housing demand has driven commodity pricing to near record levels through July. Unlike the last time commodity pricing was at these levels the supply cutbacks indicate that we will experience elevated pricing for the rest of the year and could test the record prices of 2018 if housing demand continues to be strong.
Current Lockdown Conditions
All FG markets have moved into phase 3 of opening the economy and we continue to operate normal business hours. We do not anticipate any changes in lockdown guidelines in Texas, Arizona, Colorado, New Mexico or Oklahoma.
However, as the reopening of the economy has accelerated, infection rates are a concern, especially in Arizona and Texas. At this point, we don’t believe governmental authorities are likely to walk back restrictions even in light of increased infections but the situation is fluid especially if hospital capacity becomes an issue.
We will continue to monitor the developments and communicate any change should it occur.
Commodity Market Pricing