Melena-NskLumber may be the most illiquid commodity futures market, but it's still a critical industrial raw material with the highest correlation to interest rates. All commodities are rate sensitive. Higher rates increase the cost of carrying inventories, causing prices to fall, reflecting declining demand. Lower rates encourage buying as consumers can stockpile supplies with attractive financing rates. Lumber is a market that exacerbates the relationship as it's a primary material in new home buildin ...