Lumber futures close mixed on contract rolling, November contract climbs US$1.40 to US$221.50/mbf as Nov. 15 expiry approaches
November 4, 2011
– Lumber futures closed mixed at the end of Thursday's trading on the Chicago Mercantile Exchange, on contract rolling by traders who bought November contracts and sold January, Dow Jones reported on Nov. 3.
January dipped to a low of US$218/mbf during the trading session, but made up some of the losses by the close - settling down $2.40 from Wednesday at $233/mbf. November ended $1.40 higher at $221.50/mbf and March ended $0.20 higher at $252.50/mbf.
The November contract is due to expire on Nov. 15, and buyers held back on cash markets as they waited for chances to buy at lower prices ahead of the expiry. Cash prices were quoted in a $230-$235 range.
World markets edged higher on Thursday after Greece announced that it would cancel its referendum on the Eurozone, following huge swings earlier in the week, USA Today reported. The referendum threatened a US$179 million rescue deal agreed by European Union finance leaders, but pressure from France and Germany led Greek Prime Minister George Papandreou to shelve the plan.
Markets continued to rise on Friday, but with Papandreou's government facing a confidence vote, analysts said markets remained unstable and were currently dominated by events in Greece and Europe. G20 leaders are meeting in Cannes, France, to look at ways to draw on the International Monetary Fund to prevent the debt crisis from spreading to Italy and Spain.
The primary sources of this article are Dow Jones, Chicago, on Nov. 3, 2011 and USA Today on Nov. 4, 2011.