Lumber futures product overview
Softwood lumber is a key building block in moving the world forward and breaking new ground.
The primary uses for softwood lumber include, but are not limited, to roofing, framing, paneling, and plywood (oriented strand board).
CME Group provides a way to manage lumber price risk or express a market opinion around this crucial natural resource with Lumber futures and options.
Lumber futures are physically delivered via four-lot increments, one railcar, to the Chicago switching district. This allows both western and eastern participants to access the delivery market. Lumber futures are sized at a single truck load, 27,500 board feet, allowing for more precise hedging strategies for all market participants.
A variety of species can be hedged using the Lumber futures contract. The species eligible for delivery include Spruce Pine Fir, Douglas Fir, Fir Larch, and Hem Fir.
The contracts are listed on CME and will be available for worldwide access via CME Globex and CME ClearPort. Exchange for Physical (EFP) order types are also available. They are cleared through CME Clearing, mitigating counterparty risk and providing cross margining and capital efficiencies.
Lumber futures and options provide an additional tool for your risk management. For more information, please visit cme group.com/lbr.