What Are Timber Futures?
Investors seeking exposure to forestry natural resources may be able to use futures contracts to establish exposure. While the market for these commodities in not nearly as big as for other resources, liquidity is not much of a concern.
One option is Random Length Lumber Futures, which trade on the CME under the symbol LB (LBS on the CME Globex). Each contract represents 110,000 board feet, and the underlying product is 2-inch x 4-inch lumber that is between 8 and 20 feet long. Contract months for Random Length Lumber include January, March, May, July, September, and November.
Also traded on the CME are futures contracts for Softwood Pulp and Hardwood Pulp, though these markets can be very thinly-traded.
Other Ways To Invest In Timber
Timber In The News
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- Earnings Preview: Weyerhaeuser (WY) & Halliburton (HAL)
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- Big Money Betting On Commodity Bear Market
- The Largest Private Landowners in the U.S.
- Schiff: The Fed Wants To Inflate Housing
- Timber Set to Soar Says Jeremy Grantham