Reduced U.S. hardwood sawmilling capacity is a major driver of lumber price increases over the past year, and has been compounded by a very wet spring and logger shortages. Since May 11, 2012, prices for many KD items have risen 10 to 20%, and strong flooring markets have driven up green #2&3A Common Oak prices 50% or more. Most items will see additional price increases in the months ahead. U.S. housing markets will continue to improve with the economy, though not at the rapid pace of recent months. Existing U.S. home sales have been stagnant since Nov, after a year-and-a-half of steady improvements, and the Nat’l Assoc. of Realtors® has tempered expectations for the balance of the year. Even builders are increasingly frustrated by constrained financing, labor and construction infrastructure. However, exports to Asia and Mexico will continue to outpace 2012 levels, offsetting any impacts of slower housing, and the supply increases we anticipated by this time may not show up until Aug.