New Product Hopes To Stabilize Lumber Markets
CME Group is rolling out a new lumber futures contract aimed at speculators that will hopefully add some much needed liquidity to the market…(Wall Street Journal)
“The new contract will be fulfilled with a truckload of boards instead of a railcar full, which is about one-quarter the volume of wood, delivered to Chicago rather than a remote Canadian rail junction”
“The changes are aimed at drawing home builders, sawmills, lumber yards and speculators into a market with limited participation…”
Greg Kuta of Westline Capital Strategies said that It won’t necessarily take volatility out, but at the very least you should smooth out the peaks and the valleys,”