CANNABIS BENCHMARKS WEEKLY REPORT — November 2, 2018

CANNABIS BENCHMARKS WEEKLY REPORT — PUBLISHED NOVEMBER 2, 2018

U.S. Cannabis Spot Index down 0.9% to $1,060 per pound.

 

The simple average (non-volume weighted) price decreased by $15 to $1,270 per pound, with 68% of transactions (one standard deviation) in the $500 to $2,040 per pound range. The average deal size increased nominally to nearly 4 pounds. In grams, the Spot price was $2.34, and the simple average price was $2.80.

 

The relative frequency of trades for each individual grow type was virtually unchanged from last week’s data. Outdoor flower’s share of the total reported weight moved nationwide in state-legal markets increased by almost 2% this week to make such product account for a third of the volume observed. The relative volume of indoor flower decreased by the same proportion, while that for greenhouse product was flat compared to last week.

The U.S. Spot Index declined by 0.9% this week to settle at $1,060 per pound, in the process establishing a historic low for the national composite rate for the second week in a row. Still, the U.S. Spot exhibited greater stability over the course of October this year than it did in the same period last year. In 2017, the national volume-weighted average declined by 5.6% from the first to the final week of October, from $1,455 to $1,373 per pound. This year, the U.S. Spot decreased by only 0.7% from the opening to the closing week of last month. Upward pressure on the national average during the prime harvest season month came from a price recovery in Oregon. Additionally, wholesale rates in California remain elevated compared to the other major Western markets, as businesses are working to adjust to new, still-changing regulations, as well as gain local and state licenses.

The national volume-weighted price for flower to be sold in adult-use markets was flat this week, as upticks in the recreational sector in California, as well as in the Spot Indices of Oregon and Nevada, counterbalanced declines in Colorado and Washington. Declines in the medical-only markets of Arizona and Illinois, among others, weighed down the national rate for product designated for registered patients, despite the medical sector of California’s market seeing a small week-over-week increase in its composite wholesale price.  

May 2019 Forward assessed at $1,025 per pound.

 

The average reported forward deal decreased to 52 pounds. The proportion of forward deals for outdoor, greenhouse, and indoor-grown flower represented 55%, 30%, and 15% of forward arrangements, respectively. The average forward deal size for monthly delivery for outdoor, greenhouse, and indoor-grown flower was 65 pounds, 38 pounds, and 36 pounds, respectively.

 

At $1,050 per pound, the December Forward represents a discount of 0.9% relative to the current U.S. Spot Price of $1,060 per pound. The premium or discount for each Forward price, relative to the U.S. Spot Index, is illustrated in the table below.

 

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Sample headlines from this week’s Premium Report:

  • California

    Prices for Outdoor Flower Experience Relative Stability in October as the Fall Harvest is Brought In

  • Colorado

    Spot Index Continues Recent Gradual Descent, Falling to New Historic Low for the State

  • Oregon

    Price Recovery Persists as Spot Index Rises for Fourth Consecutive Week, Despite Volume-Weighted Rates for Outdoor Product Dropping to Unprecedented Depths

  • Washington

    State Spot Index Again Sinks to All-Time Low for Any Market

  • Michigan

    Judge’s Ruling Gives Businesses Without State License Approval Temporary Reprieve from October 31st Shutdown Deadline

 Watch our CEO, Jonathan Rubin, in his latest appearance on BNN Bloomberg discussing the price declines experienced in competitive U.S. markets and the likely parallels forthcoming in Canada.

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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