CHICAGO, July 24 (Reuters) - Chicago Mercantile Exchange lumber futures closed lower Friday as profit-taking after futures ran up for limit gains on Thursday offset support from the stronger tone to cash, traders said.
* Cash lumber prices firmed from earlier in the week, but traders were willing to take profits ahead of the weekend.
* Traders noted that cash spruce sold as low as the mid $160s on Wednesday at the mill and then jumped to the $174 level on Thursday when mills cleaned up order files.
* Canadian dollar rising to its highest level against the U.S. dollar in seven weeks on Thursday, after the Bank of Canada said the economy will pull out of recession this quarter, added to the 5.5 percent jump in futures Thursday.
* September lumber closed off $3.50 per tbf at $188.00, and November was off $3.00 at $193.70.
* Random Lengths on Friday quoted cash spruce at $174 per tbf, up $2 from Wednesday and down $4 from last week.

* "Action in the Western S-P-F market drew traders' attention late Wednesday, as wholesalers covered shorts and some distributors quietly replenished inventories. This was followed up Thursday with a limit-up day in futures, and carry-over of sales into other framing species," Random Lengths said in its end of week report. * "After cutting prices early on, sometimes sharply, some producers were able to move into defensive pricing positions, while others continued to seek orders. Plenty of speculation about market prospects for the remainder of the summer circulated, with labor talks in Canada, fire season, the U.S./Canada exchange rate, and the potential for more curtailments all cited as factors that could further tighten supplies," the reporting agency added.
* Median forecast from 22 economists polled by Reuters ahead of Monday's Commerce Department new U.S. single-family home sales report had sales during June rising to an annual rate of 350,000 units from 342,000 units in May.

(Reporting by Jerry Bieszk; Editing by John Picinich)

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