Is lumber liquid? -No. Is lumber a good trending market? - Yes. As a spec play where you're risking a small piece of your futures stake and you're looking for intermediate to longer-term moves, lumber is not that bad. Seasonality tends to be a nice tool for timing turns, and the spreads tend to be manageable.
July is showing signs of support despite the bad housing news. Could this be anticipating a few hurricaines? b
I would imagine they are just pricing in the fact that the housing market should be just about bottomed out by july hence is the reason for support in july.