CME Group proposes a change to lumber contracts after almost five decades
After 49 years, the CME Group in Chicago has proposed a change to lumber contracts. Just this morning, StoneX’s Robin Cross told us the change aims to boost trade in a market that has seen a lot of extreme price swings over the past couple of years.
“It’s literally going to be one-fourth of our current contact, so it is going to be 27,500 board feet, and we’re going to be trading about $13.50 per tick. The reason I say ‘about’ is because it’s still pending regulatory approval, but it looks like everything from my end, it’s going to be good as gold,” says Cross.
This new contract would allow more people to participate in the market with a contract basically being a truckload of boards, versus the current rail car full. Cross says the contract should be approved by Thursday.