Does anybody know how lumber pricing on the commodity markets impact the retail price? I am building a new home, and trying to get a good estimate on pricing of lumber, but I’m wondering if the price goes up/down on the futures market, does the retail price immediately follow that same change, or is there some sort of delay?
Any advice or information would be helpful.
For reference, this is the market index I am looking at. https://www.nasdaq.com/market-activity/commodities/lbs
Replies
If you're looking at random length lumber futures on CME, those are the prices that are going to guide the retail prices "nationally". There's always local pricing, but generally, prices tend towards those numbers. If you're curious and have time, here's a link that my help answer a lot of questions you didn't realize you had.
https://www.cmegroup.com/trading/agricultural/files/AC-243_RanLenLumberBrochure.pdf
Thank you! Super helpful.