Fastmarkets, a leading cross-commodity price-reporting agency (PRA), announced that it has been selected as the PRA for the new CME Group cash-settled lumber futures contract. Designed to support North America’s fastest-growing lumber-producing region across the supply chain, Southern Yellow Pine futures will begin trading on March 31, 2025, pending regulatory review.
The new lumber contract leverages Fastmarkets’ trusted Random Lengths Southern Yellow Pine #2&Btr 2×4 (eastside) daily price, an industry benchmark. Unlike traditional futures contracts reliant on physical delivery, this contract will be settled based on the difference between the contract price and the market price published at the expiration of each contract.
Why Southern Yellow Pine?
Southern Yellow Pine is one of North America’s largest sources of lumber supply and represents over 36% of softwood North American softwood lumber production. The growth of this species in the US, combined with trade challenges such as tariffs on Canadian lumber, underscored the need for a dedicated futures contract aligned with the US supply chain.
”Demand for Southern Yellow Pine has increased as North American lumber production shifts southeast, creating new hedging needs for the industry,” said John Ricci, managing director and global head of agriculture products at CME Group. “We are pleased to introduce the new Fastmarkets-settled Southern Yellow Pine futures, which are complementary to our SPF futures and will allow participants across the value chain to manage their price exposure more effectively.”
With the rapid expansion of Southern Yellow Pine and increasing demand in residential and remodeling sectors, the timing is perfect to introduce this tailored risk management solution. The contract aligns with current market trends and addresses critical needs:
- Specific hedging capabilities for a rapidly growing lumber category.
- Greater accuracy and confidence, with Fastmarkets’ IOSCO-compliant price assessments.
- Adapted to shifting domestic supply as reliance on Western contracts decreases amid persistent trade uncertainties and declining sawlog availability.
“Fastmarkets is proud to partner with CME Group, combining decades of trusted price assessments with one of the world’s most respected marketplaces. This contract provides an essential resource for risk management during a pivotal time for the lumber industry,” said Przemek Koralewski, Fastmarkets global head of market development.
The Southern Yellow Pine futures contract is ideal for professionals across the softwood lumber supply chain, including:
- Loggers, mills and treaters
- Wholesalers, retailers and traders
- End users, such as home builders
With trusted data from Fastmarkets and the innovation of CME Group, the Southern Pine Futures Contract empowers industry participants to mitigate risks and capitalize on growth opportunities in North America’s fastest-growing lumber-producing region.
Southern Yellow Pine (Fastmarkets) futures will be listed by and subject to the rules of CME. For more information on the Southern Pine Futures Contract and how to trade, click here.
Find out how Fastmarkets can help you or email media@fastmarkets.com to connect with our team.
