Lumber futures suffer from low volume and open interest, which refers to the total number of open long and short positions in the futures arena. The CME delisted the old random-length lumber futures contract, replacing it with a smaller and more flexible physical lumber contract. Still, the change has not led to more liquidity. Lumber futures have been trading around the $600 level in 2025, but the lack of liquidity could send prices significantly higher or lower in the blink of an eye. In a February 25, 2025, Barchart article that asked if lumber prices could break higher, I concluded:
The odds favor higher lumber prices over the coming months as the fundamental supply-demand balance suggests that lumber demand will increase. While lumber prices could move lower, the upside price potential remains far greater than the downside price risk in early 2025.
Don’t Miss a Day: From crude oil to coffee, sign up free for Barchart’s best-in-class commodity analysis.
