CANNABIS BENCHMARKS WEEKLY REPORT — AUGUST 10, 2018

CANNABIS BENCHMARKS WEEKLY REPORT — PUBLISHED AUGUST 10, 2018

U.S. Cannabis Spot Index down 1.2% to $1,113 per pound.

 

The simple average (non-volume weighted) price increased by $14 to $1,345 per pound, with 68% of transactions (one standard deviation) in the $577 to $2,133 per pound range. The average deal size declined by 10% from 5.7 pounds to 5.1 pounds. In grams, the Spot price was $2.45, and the simple average price was $2.97.

 

The relative frequency of trades involving greenhouse-grown flower was reported to increase this week, by 2% compared to last week. The resulting decline was split evenly between deals for the other two grow types. However, greenhouse product saw its share of the total documented weight moved shrink slightly, by 1% week-over-week, as did the relative volume of outdoor flower. Consequently, indoor product’s relative volume increased by 2% compared to last week.      

The U.S. Spot Index resumed its negative momentum this week. The national composite price and the volume-weighted averages of all three grow types declined, erasing the modest gains made last week. Average deal sizes also contracted across the board. While shrinking average transaction volumes have been common so far in 2018, the magnitude with which the two sun-fueled grow types saw their average deal sizes decrease this week is notable.  

The national volume-weighted average for product wholesaled in adult-use markets declined marginally this week, as falling prices in Colorado and a drop of over $100 per pound in Oregon overwhelmed upticks in California, Washington, and Nevada. Increases in the medical markets of California, Michigan, Illinois, and Maine lifted the national rate for flower to be sold to registered patients very slightly.  

September Forward unchanged at $1,200 per pound. The average reported forward deal declined 2 pounds to 67 pounds. The proportion of forward deals for outdoor, greenhouse, and indoor-grown flower represented 45%, 40%, and 15% of forward arrangements, respectively. The average forward deal size for monthly delivery for outdoor, greenhouse, and indoor-grown flower was 85 pounds, 55 pounds, and 44 pounds, respectively.

At $1,200 per pound, the September Forward represents a premium of 7.9% relative to the current U.S. Spot Price of $1,113 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
  • Composite Price in the Adult-Use Sector Reported to Jump by Almost 14% Week-Over-Week, But Statewide Greenhouse and Outdoor Rates Slide Downward
  •  
  • Colorado
  • Volume-Weighted Price for Indoor Flower Again Reaches An All-Time Low for Colorado, While Rates for Greenhouse Product Largely Stable
  •  
  • Oregon
  • State Spot Index Plummets to New Historic Low for Oregon, Closing Below $750 Per Pound This Week
  •  
  • Washington
  • Wholesale Prices Climb for Second Straight Week, Recalling 2017’s Pre-Memorial Day Increase
  •  
  • Alaska
  • As of June, Licensed Cultivators Exceeded Total Volume of Flower Sold Wholesale for All of 2017
  •  
  • Illinois
  • Demand Remains Strong in July as Retail Sales Top $10 Million for Fifth Straight Month; But State Spot Index Levels Off as Wholesale Revenues Shrink
  •  
  • Pennsylvania
  • Early Reports of Wholesale Flower Prices Indicate that State’s Medical Cannabis Market is Among the Most Expensive in the Country

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

3 August 2018.  Copyright © 2018 New Leaf Data Services, LLC.  All rights reserved

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