What is the futures price of lumber?

Most significantly, the futures price of lumber is approaching a nearly $100 premium to the actual “cash price” of certain comparable physical random length lumbers, a situation that won’t last long if history is any guide.

How much does lumber cost?

At its height, in May, the price of lumber futures hit more than $1,600 per thousand board feet, more than four times what it averaged in the five years before 2020. In April, the National Association of Home Builders (NAHB) estimated that increased lumber prices added almost $36,000 to the average price of a single-family home.

What is a lumber futures contract?

The futures contract traded on Chicago Mercantile Exchange specifies that the lumber must be manufactured in certain U.S. states and Canadian provinces. Lumber decreased 65.98 USD/1000 board feet or 11.53% since the beginning of 2024, according to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity.