CANNABIS BENCHMARKS WEEKLY REPORT — September 28, 2018

CANNABIS BENCHMARKS WEEKLY REPORT — PUBLISHED September 28, 2018

U.S. Cannabis Spot Index down 1.7% to $1,074 per pound.

 

The simple average (non-volume weighted) price decreased by $27 to $1,262 per pound, with 68% of transactions (one standard deviation) in the $479 to $2,046 per pound range. The average deal size declined less than 1% to 4.3 pounds. In grams, the Spot price was $2.37, and the simple average price was $2.78.


National transaction stats continued this week to display the stability that has characterized them through the current quarter. The relative frequency of trades for indoor flower shrank week-over-week, by 1%, with deals for greenhouse product seeing a corresponding gain in this metric. Each grow type’s share of the total reported weight moved was virtually identical to last week. The total volume traded nationwide that was documented by Cannabis Benchmarks price reporters increased by 4.7% week-over-week.  

The U.S. Spot Index declined to establish a historic low for the third consecutive week. The current national composite price is off by nearly 30% compared to that observed at the same time a year ago, which was $1,541 per pound.

The downward momentum of the U.S. Spot’s trend line accelerated this week, as it declined by $11 after the prior four weeks saw drop offs of between $1 and $5. The modest upward movement of the Trailing 4-Week Averages of California and Colorado’s composite prices observed last week continued this week, with the trend lines of those states’ Spot Indices climbing by $1 each. Meanwhile, the rate of decline of the Trailing 4-Week Averages of Oregon’s and Washington State’s Spot rates increased this week. The recent positive momentum of the trend line of Nevada’s composite price was tempered noticeably this week, as the state’s weekly Spot Index saw its first week-over-week downturn since the final week of July.   

October Forward assessed down $25 to close at $1,025 per pound.

 

The average reported forward deal decreased 4 pounds to 57 pounds. The proportion of forward deals for outdoor, greenhouse, and indoor-grown flower represented 46%, 37%, and 17% of forward arrangements, respectively. The average forward deal size for monthly delivery for outdoor, greenhouse, and indoor-grown flower was 80 pounds, 37 pounds, and 38 pounds, respectively.

 

At $1,025 per pound, the October Forward represents a discount of 4.6% relative to the current U.S. Spot Price of $1,074 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 Down by 5.4% in September, As Rates for Greenhouse and Outdoor Flower Trend Upward Ahead of Fall Harvest

  • Colorado

    State Spot Index Down 5% Compared to Opening Week of Q3, But Rate of Decline Has Slowed in Recent Weeks

  • Oregon

    State Spot Index Again Drops to Historic Low for Any Market, Approaching $600 Per Pound

  • Washington

    Falling Prices for Greenhouse Flower Primarily Responsible for Pulling Down State Composite Price in September

  • Nevada

  • State Spot Index Sees First Week-Over-Week Decline Since the End of July

 

Watch our CEO, Jonathan Rubin, in his latest appearance on TD Ameritrade – Morning Trade Live discussing the global cannabis commodity markets and their impact on pot stocks and valuations.

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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