The CME in August will be introducing a new Lumber Futures Contract that is very beneficial to hedgers. Her are the highlights...
New Lumber futures and options
Launching on August 8*
barcharts.com
The new Lumber futures and options contract reflects changing production patterns which will make 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. Additionally, Lumber futures are sized at a single truckload to enable more tailored risk management strategies. Key features
Small contract size for precise hedging
Participation from throughout the lumber supply chain
Ability to rapidly connect to a pool of potential trading partners
Cross-margining and capital efficiencies through CME Clearing
Worldwide access via CME Globex and CME ClearPort
* Pending regulatory review
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