Lumber is a Dominant Theme:

The price of lumber is lagging the broader commodity complex by about eight years having posted a 25-year low in late 2008. The prime lumber drivers are the U.S. housing recovery and various natural disasters about the globe such as the 2011 Japan tsunami and the recent hurricane Sandy.

Random Length Lumber Futures are traded on the Chicago Mercantile Exchange. Each contract is for 110,000 board feet (260 cubic meters). Prices are quoted in Dollars per 1,000 board feet (mbf). To participate in lumber’s advance most investors are better served by investing in the lumber stocks – most good advisers know their names.

Outlook: Our relative performance study clearly displays the lumber out perform vs. a broad commodity basket form 2009 to date – also note the long series of bullish higher lows