“Inventories are on the low side, in part due to the seasonal trend as we get into the winter months,” Jon Anderson, president of Random Lengths, said in the article.
Additionally, lumber prices have been supported by the improving housing market.
While ETF investors can’t directly gain exposure to lumber futures, investors can follow timber equities through the Guggenheim Timber ETF (NYSEArca:CUT) and the iShares S&P Global Timber & Forestry Index Fund (NYSEArca: WOOD). [ETF Chart of the Day: Timber]
Guggenheim Timber ETF
For more information on the lumber industry, visit our timber category.
Max Chen contributed to this article.