CANNABIS BENCHMARKS WEEKLY REPORT — JULY 6, 2018

CANNABIS BENCHMARKS WEEKLY REPORT — PUBLISHED JULY 6, 2018

U.S. Cannabis Spot Index up 1.0% to $1,172 per pound.

The simple average (non-volume weighted) price increased by $25 to $1,350 per pound, with 68% of transactions (one standard deviation) in the $574 to $2,216 per pound range. The average deal size decreased 3.7% to 5.6 pounds from 5.8 pounds. In grams, the Spot price was $2.58, and the simple average price was $2.98.


After a couple weeks of small declines, the relative frequency of transactions for indoor flower increased slightly week-over-week, by 1%, with the entirety of the corresponding decrease experienced by trades for greenhouse product. The relative volumes of each individual grow type were flat week-over-week. This signals that summer light-deprivation harvests – which can be categorized as either greenhouse or outdoor flower, depending on the individual operation – have not yet come to market en masse.

The U.S. Spot Index saw its five-week streak of establishing historic lows disrupted this week by a small price rise. The overall increase in the national composite rate was supported by upticks in the volume-weighted averages of each individual grow type. Also disrupted this week was the recent expansion of average deal sizes. After two consecutive weeks of across-the-board increases, average deal sizes contracted this week, as they have done for much of the year to this point.    

The chart below contains the full history of the U.S. Spot Index from April 2015 to today.

January 2019 Forward assessed at $1,165 per pound.

The average forward deal increased nominally to 66 pounds. The proportion of forward deals for outdoor, greenhouse, and indoor-grown flower represented 42%, 42%, and 16% of forward arrangements, respectively, with the number of reported forwards for greenhouse-grown flower on the rise. The average forward deal size for monthly delivery for outdoor, greenhouse, and indoor-grown flower was 76 pounds, 63 pounds, and 47 pounds, respectively.


At $1,300 per pound, the August Forward represents a premium of 10.9% relative to the current U.S. Spot Price of $1,172 per pound. The premium or discount for each Forward price, relative to the U.S. Spot Index, is illustrated in the table below.

Sample headlines from this week’s Premium Report:

 California

  • Wholesale Rates Generally See Modest Upward Movement as New Testing, Packaging, and Labeling Requirements Implemented

Colorado

  • State Spot Index Virtually Flat Week-Over-Week as MED Announces Required Pesticide Testing to Begin August 1st

Oregon

  • State Spot Index Falls to New All-Time Low for Oregon’s Market, Approaching $900 Per Pound

Washington

  • State Spot Index Steady Since Mid-June, Fluctuating Within a Range of Just $8, But Remains the Lowest in the Country by a Large Measure

Nevada

  • State Spot Index Has Trended Downward Consistently in the Wake of 4/20, Now Approaching $1,800 Per Pound for the First Time

Alaska

  • Regulators Propose Changes to Wholesale Tax on Cultivators, Initial Draft Rules Do Not Include Lowering Current Levies

 

Cannabis Benchmarks®, a division of New Leaf Data Services, LLC

6 July 2018.  Copyright © 2018 New Leaf Data Services, LLC.  All rights reserved

Leave a Reply

Your email address will not be published. Required fields are marked *