U.S. Cannabis Spot Index — June 21, 2019

U.S. Cannabis Spot Index — Published June 21, 2019

U.S. Cannabis Spot Index up 0.3% to $1,259 per pound.

 

The simple average (non-volume weighted) price declined $16 to $1,429 per pound, with 68% of transactions (one standard deviation) in the $619 to $2,238 per pound range. The average reported deal size decreased to 2.5 pounds from 2.7 pounds last week. In grams, the Spot price was $2.78 and the simple average price was $3.15.

 

The relative frequency of trades for outdoor flower increased by 2% week-over-week. The relative frequency of transactions involving indoor and greenhouse product each decreased by 1%. Outdoor product’s share of the total documented weight moved nationally also expanded by almost 3% this week. The relative volumes of warehouse and greenhouse flower contracted by about 1% and 2%, respectively, relative to the week prior.  

 

The U.S. Spot Index rose marginally for the second straight week, increasing by 0.3% to settle at $1,259 per pound. This is the fifth consecutive week in which a new annual peak was established for the national composite price. Notable declines in the Spot Indices of California and Nevada this week diminished upward pressure on the national average from rising rates in Colorado, Oregon, and Washington State. As we expand upon below, Oregon’s market is experiencing unprecedented demand in recent months, while available information indicates that sales in Washington in March and April reached near-record levels. In regard to mid-sized markets, wholesale rates in Massachusetts and Michigan were on the upswing this week, but are not climbing as rapidly as they were earlier in the year. Meanwhile, Illinois’ Spot price has trended downward in Q2 after rising to one of the highest in the country at the close of Q1, while increased production in New Mexico is pushing down rates in that market.  

The national volume-weighted price for flower to be sold to general consumers jumped this week on increases in Colorado, Oregon, Washington, and Alaska. Prices for medical flower were down this week, due mainly to declines in California, Colorado, Illinois, and New Mexico.  

July Forward unchanged at $1,200 per pound.

 

The average reported forward deal size was 50 pounds. The proportion of forward deals for outdoor, greenhouse, and indoor-grown flower was 59%, 30%, and 16% of forward arrangements, respectively. The average forward deal sizes for monthly delivery for outdoor, greenhouse, and indoor-grown flower were 42 pounds, 57 pounds, and 64 pounds, respectively.

 

At $1,200 per pound, the July Forward represents a discount of 4.7% relative to the current U.S. Spot Price of $1,259 per pound. The premium or discount for each Forward price, relative to the U.S. Spot Index, is illustrated in the table below.

 

Headlines From This Week’s Premium Report:

  • California

  • Relative Volume of Outdoor Flower Traded in Legal Market is Decreasing in Q2 as Thousands of Temporary Cultivation Licenses Expire
  •  
  • Colorado

    Medical Cannabis Sales in Denver Up Year-Over-Year, Breaking from Statewide Trends

  • Oregon

  • Monthly Retail Revenue Reaches New Record High in May Even as Sales Volume Declines, Indicating Higher Price Points for Customers
  •  
  • Washington

  • Blackout of Plant and Inventory Tracking System Will Prevent Wholesale Trading for 30 Hours Beginning Night of July 13th
  •  
  • Arizona

  • State Spot Index on the Rise in May as New Sales Volume Records Established and State’s Patient Count Tops 200,000
  •  
  • New Mexico

  • State Data Shows Over 75% Expansion of Production in Q1 2019 from Rise in Plant Count Limits, Larger Harvests Pushing Down Spot Index in Current Quarter

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

21 June 2019.  Copyright © 2019 New Leaf Data Services, LLC.  All rights reserved

U.S. Cannabis Spot Index — June 14, 2019

U.S. Cannabis Spot Index — Published June 14, 2019

U.S. Cannabis Spot Index up 0.4% to $1,256 per pound.

 

The simple average (non-volume weighted) price increased $13 to $1,445 per pound, with 68% of transactions (one standard deviation) in the $619 to $2,270 per pound range. The average reported deal size increased to 2.7 pounds from 2.6 pounds last week. In grams, the Spot price was $2.77 and the simple average price was $3.18.

 

The relative frequency of trades for outdoor flower increased by 2% week-over-week. The relative frequency of transactions involving greenhouse product decreased by the same proportion, while that for deals for indoor flower was unchanged. Outdoor product’s share of the total documented weight moved nationally also expanded by 2% this week. The relative volume of greenhouse flower contracted by the same proportion, while that for warehouse flower was unchanged.   

 

The U.S. Spot Index rose by 0.4% this week to settle at $1,256 per pound, establishing a new year-to-date peak for the fourth consecutive week. All four of the major Western markets – California, Colorado, Oregon, and Washington – saw upticks in their composite prices this week. Positive trends in rates for outdoor flower in California and Oregon continued to lift the Spot Indices of those states, while volume-weighted prices for greenhouse product in Colorado and Washington rose to year-to-date highs. In contrast to last year at this time, upward price pressure on the national average is also originating from Massachusetts, Michigan, and Nevada. Massachusetts’ young adult-use market generated over $30 million in retail sales in both April and May, as we expand upon further below, after opening in late November last year. 

The national volume-weighted price for flower to be sold to general consumers jumped this week on increases in every functioning adult-use market except for Nevada, which saw only a slight decrease. Prices for medical flower were down this week, mainly on declines in California and Arizona.

July Forward assessed up $75 to $1,200 per pound.

 

The average reported forward deal size was 48 pounds. The proportion of forward deals for outdoor, greenhouse, and indoor-grown flower was 56%, 28%, and 16% of forward arrangements, respectively. The average forward deal sizes for monthly delivery for outdoor, greenhouse, and indoor-grown flower were 41 pounds, 51 pounds, and 64 pounds, respectively.

 

At $1,200 per pound, the July Forward represents a discount of 4.4% relative to the current U.S. Spot Price of $1,256 per pound. The premium or discount for each Forward price, relative to the U.S. Spot Index, is illustrated in the table below.

 

Headlines From This Week’s Premium Report:

  • California

  • Monthly Average Prices in Adult-Use Sector Declined in each Month from January through May, But Weekly Rates for Recreational Flower Are on the Rise Recently
  •  
  • Colorado

    Retail Sales Declined in April, While State Spot Index Stabilized to Close the Month After Early Declines

  • Oregon

  • State Spot Index Jumps to New Annual Peak, Settling Above $700 Per Pound for First Time in 2019
  •  
  • Washington

  • Composite Price Climbs to Year-to-Date High on Rising Rates for Indoor and Greenhouse Flower
  •  
  • Massachusetts

  • Adult-Use Retail Demand and Production Both Increased Significantly in May, as Wholesale Prices Declined by Small Margins
  •  
  • Illinois

  • Retail Medical Cannabis Sales Reached New Record High for Fourth Straight Month in May, Up by Almost 90% Year-Over-Year

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

14 June 2019.  Copyright © 2019 New Leaf Data Services, LLC.  All rights reserved

CANADA CANNABIS SPOT INDEX — June 14, 2019

CANADA CANNABIS SPOT INDEX (CCSI) 

Published June 14, 2019

*The provincial excise taxes vary. Cannabis Benchmarks estimates the population weighted average excise tax for Canada.

**CCSI is inclusive of the estimated Federal & Provincial cannabis excise taxes..

The CCSI was assessed at C$7.24 per gram this week, up 6.2% from last week’s C$6.81 per gram. This week’s price equates to US$2,466 per pound at current exchange rates.

 

This week we look at sales, tax revenue, and market dynamics in Quebec in the province’s first fiscal year of legal cannabis.

Quebec is the only large Canadian province that has kept a tight grip over cannabis sales, with its primary goal of ensuring safe consumption while minimizing the illicit market. The Quebec government mandated the Société des alcools du Québec (SAQ) to set up the Société québécoise du cannabis (SQDC) to bring legal cannabis to the market. Similar to Oregon and Washington State in the U.S., the province’s regulatory body overseeing alcohol was expanded to provide oversight of cannabis as well. The SQDC was established on June 12, 2018, ahead of legalization. Its first fiscal year of operation ended on March 30, 2019.

 

SQDC launched an online store and 12 brick and mortar locations in Quebec starting in October. With supply challenges looming at the onset of legalization, the SQDC dramatically cut store hours and slowed expansion plans. Since then the supply issues have been overcome and stores are now open seven days a week with a 13th store opened in March. The Crown corporation signed leases for three more locations in Montreal, the Laurentians, and the Montérégie.

 

SQDC reported robust sales figures despite some issues upfront. A total of C$71M in sales were tallied in the first fiscal year that ended at the close of March, with in-store sales making up roughly 81% of the sales and volume sold. The 12 locations also processed approximately 1.3M transactions with an average spend of C$51.07. Online sales were not as robust with 257,000 transactions that generated an average spend of C$61.06.

 

For this past fiscal year, the SQDC reported a balanced year when excluding C$4.9M of non-recurring start-up costs. The Quebec government received C$29.7M in consumption and excise taxes from this new industry. For the 2019-2020 fiscal year, the SQDC is projecting significantly higher earnings of C$20M with the province taking in C$89M in consumption and excise taxes.

*The provincial excise taxes vary. Cannabis Benchmarks estimates the population weighted average excise tax for Canada.

**CCSI is inclusive of the estimated Federal & Provincial cannabis excise taxes..

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Do you support wholesale market transparency?

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

14 June 2019 Copyright © 2019 New Leaf Data Services, LLC.  All rights reserved