The following information is compiled
from the Chicago Mercantile Exchange
Random Length Lumber Futures and
Options
For more than 30
years now, CME® Random Length Lumber futures and options have given mills,
wholesalers, homebuilders and retail dealers a vehicle to manage price risk
and to take advantage of price opportunities. The contract specifies 110,000
board feet (one 73’ flat car) of random length 8’ – 20’ softwood 2 x
4s, the type used for rehabbing and construction. Individual
investors favor lumber too, due to its trending nature and keen ability to
track the economy.
110 K Lumber Futures
|
|
| Trade
Unit |
|
110,000
bd. ft. of random lengths 2x4s (8' to 20') |
|
| Point
Descriptions |
|
1
point = $.10 per 1,000 bd. ft. = $11 per contract |
|
| Contract
Listing |
|
Seven
months of January, March, May, July, September, and November. |
|
| Strike
Price Interval |
|
N/A |
|
| Product
Code |
|
Clearing=LB
Ticker=LB
PRS=LB |
| Trading
Venue: Floor |
|
| Hours |
|
9:00
a.m.-1:05 p.m. LTD (12:05 p.m.) |
|
| Listed |
|
All
listed months |
|
| Strike |
|
N/A |
|
| Limits |
|
If
the contract nearest to expiration that is subject to a daily limit
closes settles on the limit bid or offer for two successive days,
the price limit is raised to $15.00 per thousand board feet for all
contracts subject to a daily limit. If the contract nearest to
expiration that is subject to a daily price limit of $15.00 does not
close settle at the limit bid or offer, the price limits revert to
$10.00 per thousand board feet on the next business day. |
|
| Minimum
Fluctuation |
|
Regular |
|
0.10=$11.00 |
|
110 K Lumber Options
|
|
| Trade
Unit |
|
One
Random Length Lumber Futures Contract |
|
| Point
Descriptions |
|
1
point = $.10 per 1,000 bd. ft. = $11 per contract |
|
| Contract
Listing |
|
Five
months of Jan, Mar, May, Jul, Sep, Nov, Serial Months and Flex®
Options |
|
| Strike
Price Interval |
|
$/thousand
board feet $5.00 intervals e.g. $160, $165 |
|
| Product
Code |
|
Clearing
Calls/Puts=LB
Ticker Calls=KL
Ticker Puts=JL
PRS
Calls/Puts=ZL
American Flex:
Calls/Puts=8U
European Flex:
Calls/Puts=9U |
| Trading
Venue: Floor |
|
| Hours |
|
9:00
a.m.-1:07 p.m. LTD (1:05 p.m.) |
|
| Listed |
|
All
listed months |
|
| Strike |
|
All
listed intervals |
|
| Limits |
|
N/A |
|
| Minimum
Fluctuation |
|
Regular |
|
0.10=$11.00 |
|
| Cab |
|
0.05=$5.50 |
|
|
|
