Lumber Futures

No two trees produce the exact same lumber, especially because of knots, slope of grain, and natural wear. As a result, The American Lumber Standard outlined specific national standards for lumber in the early 1920s, a job that is presently handled by the American Lumber Standard Committee. This ruling standardized lumber dimensions, grade, and moisture content.

Lumber Contract Specifications
Contract Size	110,000 board feet (~260 cubic meters)
Product Description	2-inch by 4-inch lumber, 8-20 feet long
Pricing Unit	Dollars per 1,000 board feet (mbf)
Tick Size (minimum fluctuation)	$.10 per mbf ($11 per contract)
Daily Price Limit	$10 per mbf above or below previous day’s settlement price; expandable to $15 per mbf See CME Rules
Trading Hours	CME Globex (Electronic): Mon 9:00am-Fri 1:55pm CT halts 4:00pm-5:00pm CT
	Open Outcry (Trading Floor): Mon-Fri 9:00am-1:05pm CT
Contract Months/Symbols	January, March, May, July, September, November
Settlement Procedure	See Daily Lumber Futures Settlement Procedures See Final Lumber Futures Settlement Procedures
Last Trade Date	Business day immediately preceding the 16th calendar day of the contract month, 12:05 p.m.
Position Limits	Non-Spot: 1,000 contracts in any contract month Spot: 435 contracts All months combined: n/a
Product Ticker Symbol	CME Globex: LBS Open Outcry: LB Clearing: LB
Exchange Rules	These contracts are listed with, and subject to, the rules and regulations of CME.
Source: CME

Lumber Facts

Although lumber has been utilized for construction for thousands of years, large-scale lumbering did not occur until the Industrial Revolution. Lumber is derived from either softwood or hardwood. Hardwood lumber, which includes oak and maple wood, is used for a variety of commercial industry needs, primarily wood pallets. Those with interesting patterns and colors are in high demand for many high-end furniture and home products from flooring to cabinets. Softwoods, such as southern yellow pine and Douglas fir, are used as structural lumber. The U.S. is known for producing softwood and is a leader in global market production of lumber. Lumber prices in the U.S. are mostly based on the strength and demand for domestic home building.

Source: Barchart

Last updated May 2013

Additional Info

Recent Posts on Lumber

• Market Spotlight: Lumber (9/8/2014) - Humans have utilized lumber for construction for thousands of years, but due to the heaviness of timber and the manual methods of harvesting, large-scale lumbering didn't occur until the mechanical advances of the Industrial Revolution.