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SDCI - Lumber Sits And Waits - WOOD Follows The Price Of The Futures
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Lumber is a critical industrial commodity. Construction projects around the world require wood, which is also an agricultural product. At the same time, paper is a wood product. The advent of computers has reduced the requirements for paper, but population growth around the world has increased the demand for housing. The bottom line is that more people on our planet increase the amount of wood required each year.
Lumber futures are highly illiquid compared to other commodities. The market suffers from low levels of daily volume, and the total number of open long and short