What are lumber futures?

Lumber futures are financial derivatives that are traded with leveraged softwood market exposure. Hedgers and speculators alike are trading lumber futures to manage risk or speculating through price fluctuations. Lumber futures market explained. Lumbers are also known as timber.

Why are lumber futures sized at a single truckload?

Additionally, Lumber futures are sized at a single truckload to enable more tailored risk management strategies. Manage risk to Chicago-delivered lumber with a contract built to reflect prices at this key location, one truck load at a time.

Why are hedgers trading lumber futures?

Hedgers and speculators alike are trading lumber futures to manage risk or speculating through price fluctuations. Lumber futures market explained. Lumbers are also known as timber. Lumber is the type of wood that has been cut into standard beams and planks.

What is a random length lumber futures contract?

A random length lumber futures contract is equivalent to 110,000 board feet (approximately 260 cubic meters) of lumber, and the pricing unit is in dollars per 1000 board feet. The lumber itself comes in 2 inches by 4 inches, with a length of 8-20 feet. The contract normally expires in January, March, May, July, September, and November.