Can one futures market act as a barometer for the housing industry, the construction sector, and the Atlantic hurricane season? “Wood” you believe that Lumber can?
Traded at the Chicago Mercantile Exchange (CME), Lumber futures provide a risk-management vehicle for producers like mills and wholesalers, as well as end users like home builders and retail dealers. Given the recent slump in the U.S. housing sector, many hedgers and traders see the Lumber futures market as a gauge of the overall health of this corner of the economy. Meanwhile, speculators often favor Lumber futures as a diversification tool, as well as a means of taking advantage of the seasonal trends of the market, including increased demand during the volatile storm season.
Lumber futures are yet another example of the exciting range of futures products now available to optionsXpress customers. Check out all the futures products now available for trading. There are more to come in the weeks ahead!
Mike Zarembski
Senior Commodity Analyst
optionsXpress
Futures involve substantial risk and are not appropriate for all investors. Please read Risk Disclosure Statement for Futures and Options prior to applying for an account.
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