Lumber is a volatile and illiquid commodity that trades on the futures exchange. While trading lumber is virtually impossible because of the lack of liquidity, it is a bellwether industrial market. Lumber is an essential material when it comes to building and construction. The price of lumber reflects the overall condition of the market for new homes across the United States.
In September 2015, the price of lumber fell to a low at $214.40 per 1,000 board feet. Many other industrial commodities declined to significant bottoms in late 2015 and early 2015. The price of