Lumber futures have never attracted the level of volume and open interest for a successful futures contract. Over the past four decades, I have traded commodity futures across all sectors and markets worldwide. I have traded illiquid markets like ethanol and frozen concentrated orange juice but have never attempted to execute a long or short position in the lumber futures arena. I may not trade lumber, but I watch its price action like a hawk.
Illiquid markets tend to experience far higher volatility than those with plenty of buyers and sellers at every price level.