The production of lumber has a rich history in North America and critical economic
importance. As the United States grew westward, so did the timber industry. By the
twentieth century, New England’s white pine, Western redwood, pine, and fir forests, and
the South’s pine forests had become important sources of national lumber.
The following map shows the softwood lumber resources across Canada and
the United States:
Concerns over sustainability of lumber resources were brought to industry attention as early as the
1870s and eventually gave rise to professional forestry and the national forest system.
Tree nurseries and reforestation efforts are now important parts of the industry.
Futures and options trading involves a substantial degree of risk and may not be suitable
for all investors. Past performance is not necessarily indicative of future results. 9-2944
According to the CME rule book, deliverable types of lumber are nominal lengths of
2x4’s manufactured in the western United States or from British Columbia or Alberta in
Canada. A variety of rules exist regarding the specifics of origin and the type of wood
allowed. Coniferous species like pine, fir, and spruce provide the bulk of softwood used
for lumber - as well as cedar and hemlock. Manufacturers remove much of the moisture
content from the green lumber, usually surfaced dry to 20% moisture content. Accepted
grades No. 1 and No. 2 must also be packaged by banding together and wrapping in poly
or paper.
The US Census Bureau’s 2007 annual industry report shows production by state as
illustrated in the following table:
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