What is the new lumber futures & options contract?

The new Lumber futures and options contract reflects changing production patterns, which makes it a more effective risk management tool for market participants. Lumber futures are physically delivered to the Chicago Switching District, allowing for a broader market participation from both western and eastern producing mills.

How many long and short positions are there in lumber futures?

In late February, the total number of open long and short positions in all physical lumber futures was below 9,000 contracts. Since the new contract size is 25,000 board feet, compared to 110,000 board feet in the retired random-length lumber futures contracts, the current open interest translates to under 2,000 contracts.

Are lumber futures illiquid?

Lumber futures remain illiquid for hedgers, speculators, and all market participants. In late February, the total number of open long and short positions in all physical lumber futures was below 9,000 contracts.