Chicago Mercantile Exchange lumber futures pit-traded session ended narrowly mixed Wednesday amid sporadic and active position rolling by commodity fund-style firms.The November contract closed pit action $0.50 per 1,000 board feet lower at $168.70. January was $0.10 lower at $192.20. March, which did not trade, settled unchanged at $204.00.
Aside from the position rolling, there was no feature in the pit, traders and brokers said. Some bargain buying was noted at the lows of the day by traders who can use the lumber and by speculators willing to bet prices are near a seasonal low, but the number of trades that could qualify for these types of transactions was small.
Cash markets were quiet and soft. Traders said mills were accepting slightly lower bids to connect with potential buyers but weren't willing to slash prices just yet.
Spread trading, the trading of two contract months simultaneously with the price difference being the important point, was the feature of the day in the pit and Globex markets.
During the pit session, the November/January spread traded 841 times in a range from $22 to $23.20, with January carrying the premium to November. The spread closed at $23.50. A 173-lot and a 482-lot spread trade were done near the close at $22.80.
As of 1522 EDT, the November/January spread had traded 178 times in the Globex market in a range from $22.10 to $23.20 and the last at $22.10.
Traders said continued position rolling was expected Thursday, and cash markets could show more weakness as well.
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