The Expert Podcast

• A major shift in the lumber finance industry—the first in decades!

• Trading now allows for truckload volumes instead of rail car volumes.
• Contracts will be based on 2x4 lumber batches with a central delivery point in Chicago instead of a remote Canadian rail junction.
• Includes Eastern Spruce, Pine, and Fir, not just Douglas Fir.

• Smaller batch sizes make lumber pricing more specific and accessible.
• No customs delays since deliveries are based in the U.S.
• More stability in pricing compared to the old contract, which had large price swings.

• Home builders, lumber yards, and sawmills gain better market participation.
• Smaller companies can hedge their costs and plan better.
• New contract structure allows builders to lock in pricing and reduce risks.

• Increased liquidity and participation from smaller players.
• Lower financial barriers—more affordable contracts (e.g., $40K-$50K instead of $200K).
• Builders no longer need to take on excessive risk when pricing lumber for projects.

• Will this new structure improve stability for homebuilders and lumber yards?
• Share your thoughts on how this affects your business and pricing strategies!