Ryan Dezember
Appearances
WSJ What’s News
Markets Plummet as Concerns Around U.S. Recession Grow
Well, this has been discussed by the exchange operator and traders for a long time as the south has become the sort of top lumber producing region in the continent. And why now? The price of the lumber that's coming from Canada, northern species, the price has risen pretty dramatically and separated from the price of southern yellow pine. It's like 50, 60 percent higher now.
WSJ What’s News
Markets Plummet as Concerns Around U.S. Recession Grow
And a lot of that is being driven by the duties that are existing on Canadian wood that is shipped into the U.S. And, of course, Trump's tariffs, which he said he's going to put 25 percent on top of those existing duties.
WSJ What’s News
Markets Plummet as Concerns Around U.S. Recession Grow
This would give them something to hedge production, like a corn farmer might buy corn futures to lock in prices, and a food company might trade futures to protect their prices of the corn that they're buying. Same thing for lumber.
WSJ What’s News
Markets Plummet as Concerns Around U.S. Recession Grow
And this would give them a tool to do that that's a lot more relevant to what they're doing than the existing lumber futures, which is a contract that's fulfilled by northern species of wood, predominantly from Canada.