Wednesday 5 August 2009

CME Lumber Review: Quiet Session Leaves Prices Mixed

CME Lumber Review: Quiet Session Leaves Prices Mixed

KANSAS CITY (Dow Jones)--Chicago Mercantile Exchange lumber futures pit trade Wednesday settled mixed, with the most active nearby contracts ending lower.

The September contract settled down $3.90, at $203.10, and November was off $6.20, at $203.20. January was down $1.30, at $220.00.

Brokers said estimated volume was only about 10% of Tuesday's level as cash market activity subsided from Tuesday's hectic pace.

Futures pressure came from speculative selling in the absence of buying interest, brokers said.

One broker said the pressure on nearby futures contracts during the daily session had little hedge pressure involved. Cash prices were near enough to nearby futures values that there was little incentive to lay off risk by selling futures.

During the pit trade, 24 September/November spreads were done in a range from even money to $0.50, premium November. The spread closed at $0.10. As of 1512 EDT, the spread had traded 185 times in the Globex market, with the CME group's listed high at even money and the listed low at $1.10, premium November. The last was given as $1.10.

An additional 22 November/January spreads were done in the Globex market. The listed high is $12.20, and the listed low is $14.50, premium January, and the last is $14.50.

Dow Jones Newswires published a price for SPF 2x4s at $204 to $210, unchanged from Tuesday.

SEP 203.10 dn 3.90 206.90 202.60
NOV 203.20 dn 6.20 209.40 202.70
JAN 220.00 dn 1.30 221.40 215.40

-By Lester Aldrich, Dow Jones Newswires; 913-322-5179;

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(END) Dow Jones Newswires

August 05, 2009 15:20 ET (19:20 GMT)

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