CANNABIS BENCHMARKS WEEKLY REPORT — September 21, 2018

CANNABIS BENCHMARKS WEEKLY REPORT — PUBLISHED September 21, 2018

U.S. Cannabis Spot Index down 0.4% to $1,093 per pound.

 

The simple average (non-volume weighted) price increased by $1 to $1,289 per pound, with 68% of transactions (one standard deviation) in the $497 to $2,080 per pound range. The average deal size declined 2% to 4.4 pounds. In grams, the Spot price was $2.41, and the simple average price was $2.84.

 

The relative frequency of trades for both indoor and outdoor product increased slightly, by less than 1% each week-over-week, with greenhouse flower seeing a decline of a bit more than 1% in this metric. Greenhouse product’s share of the total reported weight moved nationally also contracted, by about 2%, with the entirety of the corresponding increase accruing to the relative volume of outdoor flower. The relative volume of warehouse product was stable week-over-week.

The U.S. Spot Index declined by 0.4% this week to settle at $1,093 per pound, establishing a new historic low for the national composite price for the second consecutive week. Unlike last week, the overall decline was driven entirely by a downturn in the national volume-weighted rate for indoor product.

 

Viewing U.S. pricing from the state level, notable decreases in the Spot Indices of Oregon and Washington State were primarily responsible for the marginal drop in the national composite price, overwhelming increases wholesale rates reported in Nevada, Arizona, and Michigan, while the supply side markets of California and Colorado exhibited general stability in pricing relative to last week.

 

The national volume-weighted price for flower to be sold in adult-use markets ticked upward slightly this week, on the back of rises in California, Colorado, and Nevada. Despite wholesale prices demonstrating upward momentum in the sizeable medical markets of Arizona and Michigan, the national rate for flower to be sold to patients declined this week.

October Forward assessed down $50 at $1,050 per pound.

 

The average reported forward deal increased 1 pound to 61 pounds. The proportion of forward deals for outdoor, greenhouse, and indoor-grown flower represented 46%, 38%, and 16% of forward arrangements, respectively. The average forward deal size for monthly delivery for outdoor, greenhouse, and indoor-grown flower was 87 pounds, 40 pounds, and 38 pounds, respectively.

 

At $1,050 per pound, the October Forward represents a discount of 3.9% relative to the current U.S. Spot Price of $1,093 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

    Ahead of Fall Harvest, Relative Volumes of Outdoor Product Being Traded in California Recently Already Up Significantly Compared to the Same Time Last Year

  • Colorado

    July Saw Record-Setting Retail Demand in Colorado’s Legal Cannabis Market, Yet Wholesale Prices Slid to Record Lows in that Month

  • Oregon

    State Spot Index Sinks to Lowest Ever Recorded in Any Market, as Does Volume-Weighted Price for Outdoor-Grown Flower, Even with This Year’s Fall Harvest Yet to Reach Market

  • Washington

    Forecasts Suggest Generally Favorable Conditions for This Year’s Autumn Crop

  • Michigan

  • Nearly 100 Medical Cannabis Businesses Receive Reprieve from Requirement to Shut Down this Week, Will Be Allowed to Operate Until December 15th
  •  
  • Arizona
  • Sales Volume to Patients Reaches Record Levels in August, As Strong Demand Appears to be Pushing Up State Spot Index During Current Quarter

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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