CANNABIS BENCHMARKS WEEKLY REPORT — September 14, 2018

CANNABIS BENCHMARKS WEEKLY REPORT — PUBLISHED September 14, 2018

U.S. Cannabis Spot Index down 1.0% to $1,097 per pound.

 

The simple average (non-volume weighted) price increased by more than $2 to $1,288 per pound, with 68% of transactions (one standard deviation) in the $505 to $2,070 per pound range. The average deal size was nominally unchanged at 4.5 pounds. In grams, the Spot price was $2.42, and the simple average price was $2.84.

 

The relative frequency of trades for greenhouse product increased by over 1% week-over-week, with the corresponding decline split fairly evenly between transactions for the other two grow types. However, greenhouse flower’s share of the total reported weight moved nationwide decreased compared to last week, by 2%. The relative volume of indoor product saw a contraction of the same proportion, while that for outdoor flower was flat.    

The U.S. Spot Index declined by 1% this week to settle at $1,097 per pound. In the process, it established a new historic low for the second consecutive week. Sliding prices in September, just ahead of the fall harvest, are a break from trends observed nationally and in the West Coast markets in the past, which have frequently seen rates trend upward ahead of the autumn crop being brought to market. Early-finishing varieties should be cut down in the coming days and weeks, representing the beginning of the harvest season and inflating the relative volumes of the sun-fueled grow types, if the observations of prior years are any indication. The fact that the U.S. Spot has already been trending downward through August and the first half of September, driven in recent weeks by falling prices for warehouse product, could portend a harvest-season price slide of even larger proportions than documented in years past.

The national volume-weighted prices for flower to be sold to registered patients and general consumers both decreased this week, but by magnitudes smaller than that of the U.S. Spot. The decline in the national adult-use rate was due largely to sliding prices in Colorado and Washington State, which outweighed upticks in Nevada and California. Arizona’s was the only medical market to see a notable rise in its Spot price, which was overwhelmed by downturns in California, Massachusetts, Illinois, and Maine.

October Forward unchanged at $1,100 per pound.

 

The average reported forward deal decreased 1 pound to 60 pounds. The proportion of forward deals for outdoor, greenhouse, and indoor-grown flower represented 44%, 39%, and 17% of forward arrangements, respectively. The average forward deal size for monthly delivery for outdoor, greenhouse, and indoor-grown flower was 84 pounds, 41 pounds, and 40 pounds, respectively.

 

At $1,100 per pound, the October Forward represents a premium of 0.3% relative to the current U.S. Spot Price of $1,097 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

    Volume-Weighted Price for Indoor Flower Falls to New Historic Low for California’s Market, Settling Below $1,350 Per Pound

  • Colorado

    Regulators and Industry Discussed Removal of Vertical Integration Requirement for Medical Businesses at Rulemaking Hearing This Week

  • Oregon

    Greenhouse and Outdoor Product See Volume-Weighted Prices Slide to Historic Lows, But State Spot Index Up Marginally on Increased Relative Volume of Indoor Flower

  • Washington

    State Spot Index Drops by 4%, Breaking Five-Week Run of Consecutive Increases

  • Alaska

  • Wholesale Trading Volumes Continue to Expand in 2018: Tax Collections from Cultivators in July Up by Almost 240% Compared to the Same Month Last Year
  •  
  • Illinois
  • Medical Cannabis Market Sees Record Retail and Wholesale Revenues in August as Demand Continues to Grow

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

3 August 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 *