How is lumber priced?

The lumber is cut to a specific size in all three dimensions, and sold at a set price. At Rockler, we price lumber by the piece when it makes the most sense to do so. Turning stock in common sizes is priced by the piece, for example. The "lineal inch" method of pricing lumber is also simple and familiar.

Is lumber a commodity?

Lumber is a commodity. We typically have the pricing of the lumber impact our closings two quarters in the future, right, because when we order then build the house so the pricing we feel in the market, we feel in our income statement two or three quarters later. And that's true for most of our commodity pricing.

What is the futures price of lumber?

Most significantly, the futures price of lumber is approaching a nearly $100 premium to the actual “cash price” of certain comparable physical random length lumbers, a situation that won’t last long if history is any guide.