CME Group to launch a new lumber futures contract to ease price volatility and boost trading volume

On August 8, CME Group will launch a new lumber futures contract to promote deliveries and draw in more participants, smoothing out prices with several changes.
Trucks will also be allowed to fulfill contracts, as a truck carries lumber for 2 houses, while a railcar carries for 8 houses, and with the new futures contract, more buyers will be able to avoid smaller projects that didn't fit the old contract's sizing.
As a result, it could increase lumber trades by eight or 10 times as more and more lumber futures observers become confident lumber futures traders.
The lumber purchased via the new contracts will arrive in Chicago rather than a distant Canadian outpost, providing a central trade destination that is accessible to a wider range of buyers and CME's new specifications will also allow for new types of lumber, including eastern species of spruce, pine, and fir.

Image: Business Insider(India)

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