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)|
|$.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
|Exchange Rules||These contracts are listed with, and subject to, the rules and regulations of CME.|
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.
Last updated May 2013
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.