New Lumber Futures Reflect U.S. Tariffs and Shifting Wood Demand

Lumber trading on the dominant commodities exchange is following trade patterns and wood demand from North America’s Northwest to the Southeast at the end of March. On March 31 the large exchange operator, the CME Group, will commence trading Southern yellow pine lumber futures.

The move follows the U.S. imposition of import tariffs on Canadian lumber exports. The shift will follow an early Eastward shift of the lumber price point to the Chicago Switching District, which CME said allows for “broader market participation” from both western and eastern producing mills.

Existing lumber futures have heavy representation from Northwest conifers, including spruce and fir. The new futures contract will trade with the symbol SYP.

Canadian lumber has been impacted by specific tariffs of 14.5%. New tariffs would increase the total tax to 39.5% based on the Trump administration's general tariffs on Canada of 25%, but those added tariffs have been intermittently withdrawn after being announced.