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Do it Best once again demonstrated its commitment to market innovation by executing the first-ever trade on the newly launched Southern Yellow Pine (SYP) Futures contract on the Chicago Mercantile Exchange (CME).
In addition to placing the first bid and executing the first trade, Do it Best played an early role in collaborating with the CME Group to develop the contract, leveraging its market expertise to help shape a tool that provides the industry with greater price stability and predictability for SYP lumber products. The CME Group consulted Do it Best in the contract’s development to ensure it met the needs of industry buyers and sellers.
“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. “Our early involvement underscores our belief that this contract will provide meaningful benefits to dealers, manufacturers, and suppliers, offering a new tool to navigate market fluctuations with confidence.”
The introduction of the SYP Futures contract comes at a time when the industry is seeking greater pricing stability and enhanced risk management options. The supply of Spruce-Pine-Fir (SPF) lumber, traditionally sourced from Canadian forests, is shrinking due to decreasing availability in the Canadian fiber basket. As a result, southern yellow pine is playing a critical role in filling this supply gap.
“As an industry leader in the lumber futures market, Do it Best is committed to ensuring the success of this new contract,” added Kathrein. “By actively engaging in its development and taking the first trade, we are reinforcing our leadership and dedication to advancing the industry. This is a reflection of our commitment to the future of the lumber market and the long-term sustainability of our members’ businesses.”
