Lumber mini futures contract (LBR) at CME Globex - not available for trading

Discussion in 'Interactive Brokers' started by blink18, Sep 20, 2022.

  1. %%
    People may just prefer to buy a cash 2 "x4":D At this time anyway
     
    #11     Sep 20, 2022
  2. hilmy83

    hilmy83

    you have more volume chopping wood up and sell it in public lol
     
    #12     Sep 20, 2022
    murray t turtle likes this.
  3. %%
    I know several that did real well with it;
    not with one/LOL but buying\selling a truck load , lumberyard or trainload of it .
    Like Allison of CME notes, trends may provide a context\ but couldn't really predict the sawmill closings + RE demands. Not surpised housing demand slacked so much.
    I've got plenty of pine + spruce 2''x 4''; i've picked up pennies on the street before but i left a 2x4 lay, the other day\LOL:D:D
     
    #13     Sep 20, 2022
  4. Unfortunately it looks like that you won't get a reasonable answer here. And remain dependent on IB's customer support.
    I would be interest in this instrument too and am thus interested to hear when you are able to trade it.
     
    #14     Sep 21, 2022
  5. KevinBB

    KevinBB

    @blink18 IB has done the same in the past for other new contracts. Going from memory, the launch of Bitcoin and Micro Copper were both subject to the same conditions. Perhaps Micro Crude, too, but the memory is a bit hazy there.

    I'm guessing they do this because of a number of reasons, including that they would like to see volume when it comes time to close you out of a deliverable contract, and also they would like to assess volume before they determine an appropriate margin for the contract.

    The best option is probably just to keep it in your systems with "can_trade" (or whatever) turned off, until there is sufficient volume for IB to start offering this instrument for trading.

    KH
     
    #15     Sep 21, 2022
    murray t turtle likes this.
  6. blink18

    blink18

    Legitimate reasons. Looks like they have their own protocol when new contract is introduced.
    I have not received any reply from IB yet. We have to wait. Current LBS contract is just too big (risk / position size), so I can't include it in my system. No lumber for now.
     
    #16     Sep 21, 2022
    murray t turtle likes this.
  7. %%
    Most likely\ + not much demand for it right now.
    I've seen plenty of logging truck$, but mostly hardwood haulers[ saw logs ]+ softwood pulpwood\ none of which helps that softwood contract. They closed a sawmill around my southern spot\ which made 2 ''X4'' pine lumber\ lack of demand...............................
    Of course my birds eye view \so to speak\ is just a small sample, also.
    But it may have made good sense to buy one contract/ especially if that was like earnest money down + a planned home size order for a later trade??
     
    #17     Sep 21, 2022
  8. Handle123

    Handle123

    I trade full contracts of Lumber, volume is thin and not have options, so only do handful. I could never trade mini cause volume even less. I trade very long term commodities, 70 % of my trading is this way, but unless you can hedge well, I would never trade as I do.
     
    #18     Sep 21, 2022
    murray t turtle likes this.
  9. blink18

    blink18

    Got a reply from IB - copy/paste answer - without answering me when this contract will be tradeable.
     
    #19     Sep 21, 2022
  10. DevBru

    DevBru

    Of course they didn't say when this contract will be tradeable since they can't look into the future to know when there will be sufficient volume.
     
    #20     Sep 21, 2022
    murray t turtle likes this.