Managing lumber price risk

Our extensive lumber trading experience helps you enhance hedging strategies and manage margins.

Lumber solutions

The price of lumber is extremely unpredictable and, for many, the primary determinant of profitability.  Managing lumber price risk is extremely complex due to the staggering number of lengths, widths, grades and species.

StoneX specialists can help you understand the relationship between futures and the specific products you produce or trade, and develop a program that reduces market risk while managing margins.

Basis database

Our basis database allows us to define the cost basis specific to your inventory, enabling us to define your risk.

Risk management

We take on an enterprise perspective and help you manage multiple risks facing your organization, including foreign exchange and energy volatility.

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Clearing and execution

Our comprehensive suite of institutional-grade clearing and execution services delivers global exchange access to our clients.

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Why StoneX?

StoneX is a Fortune 100 company that provides clients with the solutions, tools and platforms necessary to meet budgets, stabilize input prices and secure margins. Our extensive databases and detailed quantitative analyses on your sales and purchases allow us to provide measurable bottom-line results.

Our lumber specialists can help mitigate exposure to volatile energy prices, fuel surcharges and foreign exchange rates.

Our clients

Our Forest Products Group is dedicated to providing educational and advisory services to help clients fully understand risk and the risk management process.  Based on your individual needs and risk tolerance, we can design and implement a specific program that reflects your objectives. 

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Solutions for lumber manufacturers

The StoneX Lumber Team can help you understand how to integrate futures, options and other innovative tools into your marketing structure.

Reduce volatility associated with fluctuating lumber commodity prices.

Access a variety of tools to fix pricing for an extended period or to provide price floors.

Mitigate exposure to diesel, natural gas, foreign exchange and other price risks.

Solutions for lumber end users

We help lumber buyers, dealers, home builders and truss manufacturers effectively manage lumber price volatility.

Protect the value of physical inventories using futures, options and other innovative tools.

Possible opportunities to provide long-term fixed price protection to offset risks against forward sold jobs.

Proprietary databases include cash and futures pricing spanning decades.

Implement complex strategies such as basis trading, spreading and delivery/EFP transactions.

Solutions for lumber wholesalers and distributors

We can enhance competitiveness by protecting the value of lumber inventories or identifying margin enhancement opportunities. 

Speak to our sales team

Talk to a StoneX forest industry professional today to explore your options. Our Lumber Team is ready to assist you with your business needs. 

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StoneX offers a wide variety of customized financial services to help you meet your strategic objectives.

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Derivatives market

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FAQs

What are lumber futures?

Lumber futures are financial derivatives contracts used to buy and sell a certain amount of timber. Two classes of lumber commodities are hardwood and softwood lumber.

How do I trade lumber futures?

Lumber traders utilize lumber futures contracts as a means to potentially profit from price movements. Lumber prices can change at any point during the distribution chain, so a futures contract allows a company to lock in a price and hedge against their risk exposure.

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The trading of commodities and derivatives such as futures, options, and swaps involves substantial risk of loss and may not be suitable for all investors. Advisory services as well as the trading of futures and options is available through various subsidiaries of StoneX Group Inc. including but not limited to the FCM Division of StoneX Financial Inc. Public Disclosures for the FCM Division of StoneX Financial Inc. The trading of over-the-counter products or swaps is available through subsidiary StoneX Markets LLC to individuals or firms who qualify under CFTC rules as an eligible contract participant. Please click here for the full disclaimer.