CME Group Inc. plans to replace its lumber futures contract with a smaller version that will be deliverable to Chicago rather than Western Canada, following two volatile years that lifted prices to record highs. This new truckload-size contract will be a quarter the volume of the current lumber futures, and is designed to attract more buyers and sellers to the market. The new physically delivered futures and accompanying options contracts are set to launch Aug. 8, pending regulatory approval from Commodity Futures Trading Commission.
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There are several different ways to calculate consumption. Some calculate consumption as shipments plus imports minus exports. Others look at production plus imports minus exports. However, neither of these methods takes inventory swings into account.