Southern Yellow Pine Futures Launch Offers New Tool for Retailers; Do it Best Executes First Trade
A new futures contract for Southern Yellow Pine (SYP) lumber began trading on the Chicago Mercantile Exchange (CME) in late March, offering U.S. lumberyards and home improvement retailers a new tool for managing price volatility. The SYP Futures contract is cash-settled and based on Fastmarkets’ daily pricing for #2 2x4s (east), providing a regionally relevant hedge for U.S. South softwood lumber.
Do it Best executed the first trade on the new contract. The co-op also collaborated with CME Group—a multi-exchange financial services company—in the contract’s development.
“We are proud to be an early adopter of this important tool for the lumber industry,” said Russ Kathrein, vice president of lumber & building materials at Do it Best. “This contract will provide meaningful benefits to dealers, manufacturers and suppliers.”
The launch of the SYP Futures contract arrives at a critical time, as U.S. demand for SYP rises due to declining availability of Canadian-sourced Spruce-Pine-Fir (SPF) lumber. For independent retailers, the contract offers a new level of price predictability and stability—especially valuable in a market known for recent volatility. Recent tariff increases on Canadian softwood lumber have further exacerbated price volatility, with the National Association of Home Builders noting a 17.5 percent rise in softwood lumber prices over the 12-month period ending in early 2025.
