CHICAGO, Aug 5 (Reuters) - Chicago Mercantile Exchange lumber futures closed lower in active nearby months on Wednesday amid profit-taking and additional commercial hedging in November, traders said.
* Profit-taking started late on Tuesday and continued Wednesday after futures rallied nearly $18 per thousand board feet in the previous three days.

* But underlying support continued from the rising Canadian dollar, which is prompting mill curtailments and cutting lumber production. Improvements in the housing markets and forest fires in British Columbia underpinned the market.
* September lumber closed down $3.90 per tbf at $203.10, and November was off $6.20 at $209.40.
* Random Lengths on Wednesday quoted cash spruce at $204 per tbf, up $2 from Friday and up $8 from last week.
* "Lumber prices in Canada and the West maintained an upward bias because of meager mill offerings," Random Lengths said in their midweek report.
* "Traders monitored the B.C. forest fires and the threat of fires in the West, although blazes had yet to significantly disrupt mill operations. Traders had to account for potential log shortages, which also were caused by demand from overseas as they made their buying decisions," the reporting agency said.

(Reporting by Jerry Bieszk; Editing by Lisa Shumaker)

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