US lumber soars on demand hopes after Sandy damage
* Lumber futures locked limit up
* Rise on speculative buying after Sandy
* Expectations for demand to rise
CHICAGO, Oct 31 (Reuters) - U.S. lumber futures soared on Wednesday on expectations for demand to increase in the aftermath of monster storm Sandy that caused massive flooding in the northeastern United States, damaging numerous homes that would need rebuilding.
The storm, which made landfall on Monday evening and has killed at least 45 people, may cause up to $15 billion in insured losses, according to one disaster-modeling company.
"Historically, this is what happens after a natural disaster," said Michael Young, president of Pacific Futures Trading in Seattle, Washington.
Chicago Mercantile Exchange November, January and March lumber futures rose by the daily trading limit of $10 per thousand board feet and remained locked at those levels, effectively shutting down trading.
Benchmark January futures were $10 higher at $331.20 per tbf at 8:51 a.m. CDT (1351 GMT).
Traders said speculators were behind much of the buying in lumber futures as they anticipated demand to increase when people affected by Sandy begin to rebuild or repair their homes. Continued...