Lumber prices fall 35% after crypto exchanges list futures

Since cryptocurrency exchanges began offering lumber contracts, the commodity's price has dropped by 35%.

When that happened, the idea of using blockchain to tokenize, trade or track a real-world commodity appeared to be a promising innovation.

In early 2021, at the height of the COVID-era housing boom, lumber prices were climbing sharply due to strong demand for home renovations and constrained supply from quarantined workers and disrupted logistics.

FTX introduced its lumber futures contract on May 6, 2021. From that point onward, the US dollar price of lumber has dropped by 34.9%, and the decline would be steeper when adjusted for inflation, given the erosion of purchasing power over roughly five years.

According to Protos, about $23 million worth of lumber was traded on FTX in the initial days.

The Bureau of Labor Statistics' seasonally adjusted lumber index stood at 455.4 in May 2021, its highest level, versus 296.4 in July 2026.

Lumber: a misguided crypto fad

Lumber covers a wide range of products, with thousands of different prices based on wood type, quality, and geographic origin.

Cash prices differ according to species, grade, size, delivery location, and many other variables.

The CME likewise modified its futures contract in August 2022, including a sunset period that expired in May 2023.

The previous contract, known as Random Length Lumber, covered 110,000 board feet and supplied from western mills.

The new contract, which launched on August 8, 2022, covers 27,500 board feet and delivers to Chicago.

CME removed the old contract in May 2023 after the sunset period. As a result, any continuous chart that joins the two differently sized contracts must account for a real change in specifications.

However, both contracts are quoted in US dollars per 1,000 board feet, so their common unit allows analysts to construct a comparable—though stitched—price chart over the period.