Coverage Note: Random Lengths proposes to simplify monthly average calculation

With effect from September 2020, Random Lengths is proposing to simplify the process for calculating monthly averages.

Monthly averages appear in the Random Lengths weekly publication and in Yardstick. Currently they are calculated using the ISO 8601 rule, whereby the first week of the year is the week containing the first Thursday. In determining monthly averages, Random Lengths expands that rule, so the first week of a month is the week that contains the first Thursday of the month.

From September, Random Lengths proposes to use the simple arithmetic average of all prices published in the calendar month to calculate the monthly averages. This should not affect calculations for the rest of 2020, but may impact the averages in 2021 if the first day of the month falls on a Friday.

At the same time, Random Lengths will move to publishing lumber prices online with the actual date of assessment (usually a Thursday) rather than the date of the weekly publication (Friday’s date). This approach is more consistent with other parts of the Fastmarkets business.

To see Random Lengths pricing methodologies and specification documents visit www.randomlengths.com/Methodology.

To provide feedback on this notice, please contact Matt Graves at pricing.risi@fastmarkets.com no later than August 31^st. Please add the subject heading ‘FAO: Matt Graves re: Random Lengths Monthly Averages.’