Just found out most lumber prices are based on the Chicago Mercantile Exchange futures market

Was digging into why my builder kept adjusting quotes mid-project and stumbled on this. Had no idea random commodity traders 1000 miles away basically set what I pay for 2x4s. Wild that my custom home budget swings harder on a trading desk than on actual supply. Anyone else had a builder explain this to you upfront or did you find out the hard way?

2 comments

2 Comments

maxmurphy6d ago

Actually the futures market mostly affects the prices of big commercial projects and lumber mills, not so much what a homeowner pays at the local lumberyard. Most small builders lock in their prices with local suppliers weeks ahead of time, so you're seeing more of a regional demand spike than traders messing with your budget. The real culprit is usually the mill shutting down or a trucking shortage closer to home.

the_eva6d ago

That actually makes a lot of sense, never thought about it that way.