What are Lumber Futures?
Lumber futures are popular for tracking the economy, and the massive price opportunities they offer to traders. Lumber producers can use lumber futures for price discovery and to manage the price fluctuations in their market.
Lumber, used for constructing many industrial and home objects, enjoys a high global demand. The market for Lumber can experience price fluctuations within short periods of time, which is why Lumber futures have gained importance in the financial markets.
Lumber futures help producers and marketers to manage the risk of price fluctuations in the Lumber market. A Lumber future is a standardized contract that is traded on an exchange between two parties. The buyer of the contract agrees to accept delivery of a specified quantity of Lumber at a predetermined price at a future specified date. The seller agrees to supply such a quantity as per the contract.