Lumber futures are standardized contracts traded on the Chicago Mercantile Exchange (CME) that represent a commitment to buy or sell a specific quantity of lumber at a predetermined price on a future date. They are used by producers, builders, and investors to hedge against or speculate on price movements in …
Description: Lumber futures have been traded on the CME since 1969, originally as random-length lumber contracts. They provide a benchmark for pricing lumber in North America and are essential for risk management in the construction industry. The contract size is 110,000 board feet of random-length lumber, with delivery points in the US Pacific Northwest and Canada. Lumber prices are influenced by housing starts, renovation demand, supply chain disruptions, and tariffs. The futures market allows participants to lock in prices, manage inventory risk, and gain exposure to the commodity without physical delivery. Lumber is a key input in residential and commercial construction, making its futures a vital tool for builders, sawmills, and investors.
Established / Launched: 1969
Founder / Issuer: Chicago Mercantile Exchange (CME Group)
