CANNABIS BENCHMARKS WEEKLY REPORT — AUGUST 17, 2018

CANNABIS BENCHMARKS WEEKLY REPORT — PUBLISHED AUGUST 17, 2018

U.S. Cannabis Spot Index up 0.5% to $1,118 per pound.

 

The simple average (non-volume weighted) price increased by $5 to $1,350 per pound, with 68% of transactions (one standard deviation) in the $562 to $2,139 per pound range. The average deal size declined by 6.2% from 5.1 pounds to 4.8 pounds. In grams, the Spot price was $2.47, and the simple average price was $2.98.

The relative frequency of trades involving both indoor and greenhouse-grown flower were observed to decline marginally this week, by less than 1% each. The relative frequency of transactions for outdoor product consequently increased by less than 2%. Greenhouse and outdoor flower both saw their shares of the total reported weight moved expand by 1% each. As a result, warehouse product’s relative volume contracted by 2% week-over-week.        

The U.S. Spot Index ticked upward slightly this week, with increases in the volume-weighted prices for indoor and outdoor flower lifting the overall composite rate. Average deal sizes continued to shrink, although that for greenhouse product was stable for the most part. The mean composite transaction volume for the U.S. as a whole followed last week’s almost 10% decrease with another notable contraction.   

The U.S. volume-weighted rate for greenhouse flower fell to establish another historic low for that grow type on the national level, settling this week at $939 per pound. Oregon’s state Spot Index slipped to an all-time low for that market, while the state’s volume-weighted price for outdoor product this week – $398 per pound – is the lowest ever observed for that grow type in any market. On the other end of the spectrum, warehouse flower in Michigan ascended to a year-to-date high this week of $2,040 per pound.   

September Forward assessed down $50 to $1,150 per pound.

 

The average reported forward deal was just under 68 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 92 pounds, 55 pounds, and 42 pounds, respectively.

 

At $1,150 per pound, the September Forward represents a premium of 2.8% relative to the current U.S. Spot Price of $1,118 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

    Current Major Wildfires Reported to Have Small Impact on Wholesale Market, With Forecasted Harvest Season Conditions Favorable for Both a Robust Crop and More Fires

  • Colorado

    Total Retail Sales for June Up Marginally Year-Over-Year, But State Spot Index Slid in that Month Even with Elevated Summer Demand

  • Oregon

    State Spot Index Slips Below $700 Per Pound, Falls Below Washington State’s to Become Lowest in the Country

  • Washington

    Composite Rate Reported to be on the Rise for the Third Consecutive Week

  • Michigan

  • Opening of Licensed Commercial Medical Market Imminent with Testing Labs Recently Approved for State Licenses
  • Volume-Weighted Price for Indoor Flower Ascends to Year-to-Date High

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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