In late 2024, lumber futures climbed by 5.66% in the fourth quarter but ended the year 3.76% lower, settling at $550.50 per 1,000 board feet. By mid-November, prices had climbed to $617.50 before softening slightly. The choppy trend in lumber futures, compounded by the market’s infamous illiquidity, sets the stage for significant price volatility in 2025. The CME’s physical lumber futures contract, introduced in 2022, was designed to improve market accessibility with a smaller contract size and flexible delivery locations. Yet, with only 5,960 contracts of open interest and average ...