Nov 6 (Reuters) - U.S. lumber futures rallied by the daily trading limit of $10 on Tuesday on speculative buying amid expectations that demand will rise as structures in the eastern seaboard are repaired or rebuilt in the aftermath of superstorm Sandy.

Analysts said buy-stops were triggered as prices rose. Gains were also fueled by the discount of Chicago Mercantile Exchange lumber futures to prices in the cash market, they noted.

"Speculative short-covering tripped stops," said floor broker Paul Court, vice president for forest products at INTL FC Stone.

He said the buy-stops in the January contract were hit above Friday's high of $330.20 per thousand board feet and the high of $331.20 on its last day of October trading.

Benchmark CME January lumber settled $10, or 3 percent, higher at $333.30 per tbf in pit trading and March rose $10, or 3 percent, to $338.00.

The spot November contract, which was in delivery mode and therefore not bound by the daily trading limit rule, rose $10.30, or 3 percent, to $324.70.

Two days after Sandy made landfall on Oct. 29, lumber futures soared to a 19-month high on expectations for demand to increase as damaged homes are rebuilt in the coming months.

Source: Reuters

Posted and edited by Riona, Hanbao News Department

Contact: rionach@cltimber.com