CANNABIS BENCHMARKS WEEKLY REPORT — AUGUST 24, 2018

CANNABIS BENCHMARKS WEEKLY REPORT — PUBLISHED AUGUST 24, 2018

U.S. Cannabis Spot Index down 0.8% to $1,109 per pound.

 

The simple average (non-volume weighted) price decreased by $28 to $1,322 per pound, with 68% of transactions (one standard deviation) in the $537 to $2,107 per pound range. The average deal size declined by 2.3% from 4.8 pounds to 4.7 pounds. In grams, the Spot price was $2.45, and the simple average price was $2.91.

 

National Transaction Stats this week continued the relative stability that has marked most of this summer. The relative frequency of trades for outdoor-grown product expanded slightly, by less than 1% compared to last week, with the corresponding declines not discernible in the chart below. Each grow type’s share of the total reported weight moved nationwide this week was virtually identical to those observed last week.        

The U.S. Spot Index slipped by almost 1% this week to establish a new all-time low for the national composite price, with the overall decline underpinned by dips in the volume-weighted average rates of indoor and outdoor product. Average deal sizes shrank across the board for the second consecutive week. Average volumes of transactions involving greenhouse flower have been the most stable recently, however, despite the persistent declines.   

In addition to the U.S. Spot price falling to establish a new historic low, state-level composite rates in California and Oregon did the same for those markets, declining to $1,102 and $662 per pound, respectively. Additionally, the volume-weighted average price for outdoor flower in Oregon once again sank to a historic low for that grow type in any market, dropping to $371 per pound this week.

The U.S. Cannabis Spot Index

  • Opened 2016 at $2,030 and closed at $1,615, down 20%

  • Opened 2017 at $1,532 and closed at $1,436, down 6%

  • Opened 2018 at $1,503 and closed 24th of August at $1,109, down 26% YTD

 

September Forward unchanged at $1,150 per pound.

 

The average reported forward deal declined more than ten pounds to 57 pounds. The proportion of forward deals for outdoor, greenhouse, and indoor-grown flower represented 39%, 42%, and 19% of forward arrangements, respectively. The average forward deal size for monthly delivery for outdoor, greenhouse, and indoor-grown flower was 76 pounds, 48 pounds, and 39 pounds, respectively.

 

At $1,150 per pound, the September Forward represents a premium of 3.7% relative to the current U.S. Spot Price of $1,109 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

    State Spot Index Drops to All-Time Low for California’s Market, Approaching $1,100 Per Pound

  • Colorado

    Over 75% of Reported Volume Traded Sold for $1,000 Per Pound or Below in Recent Weeks

  • Oregon

    State Spot Index Descends Again, Sinking Below $675 Per Pound and Settling Just Above the Current Historic Low for Any Market

  • Washington

    Wholesale Prices Continue to Trend Upward Gradually, As Reports Surface that Some Producers May Be Holding Back Inventory

  • Arizona

  • Strong Sales and Patient Growth Continue in July, Pushing State Spot Index to First Month-Over-Month Rise Thus Far in 2018

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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