CME lumber ends lower in thin trade

CHICAGO, Nov 6 (Reuters) - Lumber futures on the Chicago Mercantile Exchange closed lower on Friday amid local pressure and lack of outside interest as a lumber industry convention kept many traders away from their offices.

* Futures posted gains in overnight electronic trade on expectations that President Barack Obama would sign a bill that extends homebuyer tax credits.

* But much of the expected benefits from the bill were already in the futures market and prices turned lower amid slow cash lumber trade and expectations it would still be a long time before housing fully recovers.

* Limitless November lumber 2LBX9 closed off $2.40 at $186.10 per tbf, with January 2LBF0 off $5.50 at $208.00.

* Random Lengths on Friday reported cash spruce at $192 per tbf, unchanged from Wednesday and a week ago.

* "After light fill-in buying Monday and Tuesday, buyers stepped back, while producers mostly held close to their quotes. Early week activity, albeit light, was attributed in part to buyers tying up loose ends before embarking for the NAWLA (North American Wholesale Lumber Association convention)," Random Lengths said.

* "With winter on the way, most traders expected consumption to contract. But they also acknowledged the potential for additional curtailments around the Thanksgiving holiday in the U.S.," they said.

* "The Western Wood Products Association released its outlook for 2010, calling for a slow recovery with a housing starts forecast of 668,000 units," they reporting agency added. (Reporting by Jerry Bieszk; Editing by Walter Bagley)