CANNABIS BENCHMARKS WEEKLY REPORT — December 7, 2018

CANNABIS BENCHMARKS WEEKLY REPORT — PUBLISHED December 7, 2018

U.S. Cannabis Spot Index down nominally, by 0.1%, to $1,089 per pound.

 

The simple average (non-volume weighted) price decreased by $8 to $1,216 per pound, with 68% of transactions (one standard deviation) in the $494 to $1,937 per pound range. The average deal size increased nearly 3% to 4.2 pounds from 4.1 pounds last week. In grams, the Spot price was $2.40, and the simple average price was $2.68.

The relative frequency of trades for greenhouse flower increased again this week, by more than 2%. The relative frequency of deals involving indoor product contracted marginally, while that for transactions of outdoor flower decreased by about 2%. Each individual grow type’s share of the total reported weight moved nationally was largely stable week-over-week, although a comparison of the chart below with last week’s shows that the relative volume of greenhouse product grew marginally.  

The U.S. Spot Index slipped marginally this week, by 0.1%, to settle at $1,089 per pound. Declines in Washington State and Nevada, as well as a small decrease in Arizona’s Spot Index, were enough to pull down the national average slightly. Additionally, as we noted last week, Oregon continues to see lower-than-usual trading volume, while that documented in Washington made up a larger proportion of the weight moved nationally than is typical. Overall, the U.S. Spot Index is up by 1.1% quarter-to-date, and has been lifted by rising volume-weighted prices for indoor and outdoor-grown flower. The national going rate for greenhouse product has declined since the outset of Q4, but by less than 1%.

The national volume-weighted price for flower to be sold in adult-use markets continued to climb this week, as rising wholesale rates in Colorado and Oregon outweighed declines in Washington, Nevada, and California’s recreational sector. Increases in rates for flower designated for patients in California, Michigan, Massachusetts, and New Mexico were not enough to push up the national rate for product in medical markets.   

June 2019 Forward assessed at $1,000 per pound.

 

The average reported forward deal increased to 57.6 pounds. The proportion of forward deals for outdoor, greenhouse, and indoor-grown flower was 53%, 30%, and 17% of forward arrangements, respectively. The average forward deal size for monthly delivery for outdoor, greenhouse, and indoor-grown flower was 67 pounds, 49 pounds, and 44 pounds, respectively.

 

At $1,065 per pound, the January 2019 Forward represents a discount of 2.2% relative to the current U.S. Spot Price of $1,089 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

    State Spot Index up Almost 9% from Harvest Season Trough in Late October, But Rates for Outdoor Continue to Slide Downward Gradually

  • Colorado

    Composite Price Ascends to Settle Above $900 Per Pound for the First Time Since July

  • Oregon

  • Monthly Average Spot Index for November Up 8% Compared to October’s, as Recovery in Weekly Composite Price Continued This Week
  •  
  • Washington

  • State Spot Index and Prices for Indoor and Greenhouse Flower Fall to Historic Lows for Any Market
  •  
  • New Mexico

  • Production Contracted in Q3, According to State Data, But Dispensaries Increased On-Hand Inventory and Wholesale Pricing Declined
  •  

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

3 August 2018.  Copyright © 2018 New Leaf Data Services, LLC.  All rights reserved

CANNABIS BENCHMARKS WEEKLY REPORT — November 30, 2018

CANNABIS BENCHMARKS WEEKLY REPORT — PUBLISHED NOVEMBER 30, 2018

U.S. Cannabis Spot Index down 1.1% to $1,091 per pound.
The simple average (non-volume weighted) price decreased by $32 to $1,224 per pound, with 68% of transactions (one standard deviation) in the $480 to $1,968 per pound range. The average deal size decreased 6.8% to 4.1 pounds from 4.4 pounds last week. In grams, the Spot price was $2.40, and the simple average price was $2.70.

The relative frequency of trades for greenhouse flower increased this week, by less than 2%, while that for deals involving indoor product contracted by the same proportion and the relative frequency of transactions for outdoor flower was flat. Greenhouse product’s share of the total reported weight moved was stable week-over-week. Meanwhile, the relative volume of warehouse flower grew by 1% compared to last week, while that for outdoor product decreased by the same proportion.

The U.S. Spot Index declined by 1.1% this week to settle at $1,091 per pound. This despite three of the four major Western markets – Colorado, Oregon, and Washington State – seeing increases in their composite prices. However, the total volume of trading reported in Oregon was smaller than usual, lessening the influence of that state’s Spot Index on the national average. The U.S. Spot averaged $1,075 per pound for November, virtually identical, but down marginally, compared to October’s monthly mean price of $1,076 per pound. In 2017, the national composite rates’s monthly average ticked downward by 0.6% from October to November, from $1,421 to $1,412 per pound.

The trend line of the U.S. Spot Index continued its upward momentum this week, but its rate of increase was tempered slightly by the decline in the national weekly volume-weighted average. The Trailing 4-Week Average of Colorado’s composite price is now displaying clear positive movement after very a very modest upturn last week. Despite significant regulatory uncertainty, the trend line of Michigan’s Spot Index continues to sink gradually, behavior that commenced in mid-October. The downward trend in wholesale prices in Michigan may be due to a significant reduction in wholesale buyers, which we note in the Forward Curve commentary. While outdoor growing is permitted under Nevada’s rules, such product has not been reported as part of the state’s supply mix at this time and the Trailing 4-Week Average of the Silver State’s Spot Index has climbed upward through this month.

December 2018 Forward closes up $25 to $1,100 per pound.

The average reported forward deal declined nominally to 56.5 pounds. The proportion of forward deals for outdoor, greenhouse, and indoor-grown flower was 54%, 30%, and 16% of forward arrangements, respectively. The average forward deal size for monthly delivery for outdoor, greenhouse, and indoor-grown flower was 67.5 pounds, 44 pounds, and 43 pounds, respectively.

At $1,100 per pound, the December Forward represents a premium of 0.8% relative to the current U.S. Spot Price of $1,091 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-Grown Flower Up 15% Quarter-to-Date

  • Colorado

    State Spot Index Up 5.5% Compared to Historic Low Observed Three Weeks Ago

  • Oregon

  • State Composite Rate up 20% Quarter-to-Date, Even as Prices for Outdoor Flower Sink with Reports of Robust Fall Harvest
  •  
  • Washington

  • State Spot Index Experiences First Week-Over-Week Rise Since Close of August, But Still Down 16% Quarter-to-Date
  •  
  • Arizona

  • Sales Volume to Patients Reaches New Record Heights in October, But Stability in Wholesale Pricing Indicates Adequate Supply to Meet Demand
  •  
  • Michigan

  • Regulators Formulate Proposal to Commence Licensed Medical Market, While Allowing Licensees to Supplement Supply by Purchasing From Caregivers
  •  

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Do you support wholesale market transparency?

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

3 August 2018.  Copyright © 2018 New Leaf Data Services, LLC.  All rights reserved

CANNABIS BENCHMARKS WEEKLY REPORT — November 21, 2018

CANNABIS BENCHMARKS WEEKLY REPORT — PUBLISHED NOVEMBER 21, 2018

HAPPY THANKSGIVING!!!

U.S. Cannabis Spot Index up 2.5% to $1,103 per pound.

 

The simple average (non-volume weighted) price decreased by $6 to $1,256 per pound, with 68% of transactions (one standard deviation) in the $489 to $2,024 per pound range. The average deal size increased 4.2% to 4.4 pounds from 4.2 pounds last week. In grams, the Spot price was $2.43, and the simple average price was $2.77.


The stability that has recently characterized national Transaction Stats was again on display this week. The relative frequency of trades for greenhouse flower contracted marginally, by less than 1%, with any corresponding increases so small as to not be visible in the chart below. Indoor-grown product’s share of the total reported weight moved nationwide in state-legal markets expanded by 1% compared to last week; the relative volume of outdoor flower decreased by the same proportion, while that for greenhouse product was unchanged.  

The U.S. Spot Index followed last week’s 2.7% rise with an increase of 2.5% this week, causing it to settle at $1,103 per pound. This week’s national composite price is the highest observed since September 7th, prior to the commencement of the harvest season. A notable uptick in California’s Spot rate was primarily responsible for the continued climb of the national average this week, while an increase in Colorado’s composite price also applied upward pressure. Rising prices in the two largest state-legal cannabis markets overwhelmed continued downturns in Washington State, where historically low wholesale rates continue to be reported, as well as modest declines in the Spot Indices of Oregon and Nevada. Last year at this time, the U.S. Spot Index experienced a rise of 1.8% in the week of the Thanksgiving holiday.

The national volume-weighted price for flower to be sold in adult-use markets climbed again this week, as upticks in California and Colorado outweighed declines in Washington and Alaska, as well as marginal downturns observed in Oregon and Nevada. A rise in rates for flower designated for patients in California, along with an increase in Arizona’s Spot Index, were the primary drivers of the increase in the national volume-weighted price for product in medical markets.

December 2018 Forward up $25 to $1,075 per pound.

 

The average reported forward deal increased 1 pound to 57 pounds. The proportion of forward deals for outdoor, greenhouse, and indoor-grown flower was 55%, 30%, and 15% of forward arrangements, respectively. The average forward deal size for monthly delivery for outdoor, greenhouse, and indoor-grown flower was 68 pounds, 44 pounds, and 41 pounds, respectively.

 

At $1,075 per pound, the December Forward represents a discount of 2.6% relative to the current U.S. Spot Price of $1,103 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

    Volumes of Flower, Trim, and Fresh Plants Sold Wholesale in Q3 All More Than Double Compared to Prior Quarter

  • Oregon

    Harvest Season Inspections and Enforcement Could Result in License Cancellations for Dozens of Growers

  • Nevada

  • Retail Sales and Wholesale Tax Receipts Increased Slightly in August, Along with State Spot Index
  •  
  • Massachusetts

  • Adult-Use Sales Commenced This Week, But Only Two Storefronts Open to Serve General Consumers
  •  

 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

CANNABIS BENCHMARKS WEEKLY REPORT — November 16, 2018

CANNABIS BENCHMARKS WEEKLY REPORT — PUBLISHED NOVEMBER 16, 2018

 U.S. Cannabis Spot Index up 2.7% to $1,076 per pound.

 

The simple average (non-volume weighted) price increased by $16 to $1,262 per pound, with 68% of transactions (one standard deviation) in the $485 to $2,040 per pound range. The average deal size increased 3.8% to 4.2 pounds. In grams, the Spot price was $2.37, and the simple average price was $2.78.

 

National Transaction Stats continued to display steadiness this week. Just like last week, the relative volume of each grow type traded was stable compared to the week prior. The relative frequency of transactions for indoor-grown flower decreased slightly week-over-week, by 1%, with deals for greenhouse product seeing a rise of the same proportion in this metric. The relative frequency of trades for outdoor flower was flat compared to last week.

The U.S. Spot Index rose by 2.7% this week to settle at $1,076 per pound, breaking a streak of three consecutive weeks of declines. The national volume-weighted prices for all three grow types were on the upswing this week, as were the Spot Indices of three of the four major Western markets, with Washington State the only exception. Wholesale prices may have been pushed upward by increased demand ahead of the Thanksgiving holiday, as the subsequent weekend has become one where retailers expect increased sales. Last year at this time, though, the U.S. Spot fell to its annual low of $1,368 per pound in the week ending November 17, 2017. However, it would rise the following week, to $1,392 per pound. Data from prior years suggests that this year’s annual low may already be behind us, but very different market landscapes in 2018 mean that unprecedented price movements remain well within the realm of possibility.

Average deal sizes were up across the board this week, although the growth in the mean volume of transactions involving outdoor flower slowed compared to observations from recent weeks. Retailers and medical dispensaries may be looking to bring in inventory ahead of next week’s Thanksgiving holiday, when most will offer discounts and promotions in an attempt to drive increased sales. Average deal sizes were also on the upswing for the most part at this time last year, with the only exception being that for greenhouse product.     

December 2018 Forward unchanged at $1,050 per pound.

 

The average reported forward deal was unchanged at 56 pounds. The proportion of forward deals for outdoor, greenhouse, and indoor-grown flower were also unchanged, representing 56%, 29%, and 15% of forward arrangements, respectively. The average forward deal size for monthly delivery for outdoor, greenhouse, and indoor-grown flower was 69 pounds, 38 pounds, and 41 pounds, respectively.

 

At $1,050 per pound, the December Forward represents a discount of 2.4% relative to the current U.S. Spot Price of $1,076 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

    State Spot Index Rises to Highest Level Observed Since the Opening Week of October

  • Colorado

    Retail Sales Decline in September, with Combined Adult-Use and Medical Revenues Down Slightly Compared to those Recorded in September 2017

  • Oregon

    State Composite Price Rises for Sixth Straight Week, Now Almost 14% Above Recent Historic Low Established at the Beginning of October

  • Washington

    State Spot Index Again Sinks to New Historic Low for Any Market, Approaching $550 Per Pound

  • Michigan

  • Restraining Order Against State Regulators Extended, Allowing Applicants for Medical Cannabis Business Licenses to Continue Operating Under Temporary Authorization While Awaiting Judicial Decision
  •  
  • Illinois

  • Retail Sales Reach Record Heights in October, While Wholesale Revenues and State Spot Index See Modest Increases
  •  

 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

CANNABIS BENCHMARKS WEEKLY REPORT — November 9, 2018

CANNABIS BENCHMARKS WEEKLY REPORT — PUBLISHED NOVEMBER 9, 2018

VISIT US AT THE MJ BIZ CONFERENCE BOOTH #3979!

U.S. Cannabis Spot Index down 1.2% to $1,047 per pound.

 

The simple average (non-volume weighted) price decreased by $24 to $1,246 per pound, with 68% of transactions (one standard deviation) in the $483 to $2,010 per pound range. The average deal size increased 2.8% to 4 pounds. In grams, the Spot price was $2.31, and the simple average price was $2.75.

 

National Transaction Stats were quite stable week-over-week. The relative frequency of trades for indoor flower declined by 1%, with the resulting increase accruing to transactions involving greenhouse product. Each grow type’s share of the total reported weight moved nationwide was virtually unchanged compared to last week. Last year at this time, the relative volumes of warehouse, greenhouse, and outdoor-grown flower were documented to settle at 44%, 31%, and 25%, respectively.

The U.S. Spot Index declined by 1.2% this week to settle at $1,047 per pound. This week’s national composite price represents another historic low, the third consecutive week in which that milestone has been established. Nearly every state market covered by our reporting – with the exceptions of Nevada, Maine, Massachusetts, and Vermont – saw week-over-week decreases in their Spot Indices, while Oregon’s was flat.

 

Transaction States continued to be fairly stable, both on the national level and in the major Western markets. This observation – along with the significantly smaller deal sizes documented this year relative to last – suggests that persistent oversupply situations and low prices have dampened demand from wholesale buyers, who in prior years have been eager to stock up on cheap product in the wake of the autumn harvest.

The national volume-weighted price for flower to be sold in adult-use markets dropped by almost 2% this week. Nevada was the only state with a functional adult-use system to see an uptick in its Spot rate this week, and of less than 1% at that. Declines in the medical-only markets of Arizona, Illinois, and Michigan, among numerous others, weighed down the national rate for product designated for registered patients.  

December 2018 Forward unchanged at $1,050 per pound.

 

The average reported forward deal increased to 56 pounds from 52 pounds last week. The proportion of forward deals for outdoor, greenhouse, and indoor-grown flower represented 54%, 30%, and 16% of forward arrangements, respectively. The average forward deal size for monthly delivery for outdoor, greenhouse, and indoor-grown flower was 69 pounds, 38 pounds, and 41 pounds, respectively.

 

At $1,050 per pound, the December Forward represents a premium of 0.2% relative to the current U.S. Spot Price of $1,047 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

    Issuance of First Annual Licenses Means Those Businesses Will be Required to Use METRC Tracking, But Wholesale Price Disruption Not Expected Immediately

  • Colorado

    Composite Price Again Falls to New Historic Low on Declining Prices for Greenhouse Flower, Increased Relative Volume of Outdoor Product

  • Oregon

    Despite Recent Upward Trend, Quarter-to-Date Average of State’s Spot Index Down Over 15% Compared to Q3’s Mean Composite Price

  • Washington

    Tax Collection Data Suggests Decrease in Demand Contributing to Record Low Wholesale Prices

  • Michigan

  • Commencement of Regulated Medical Market Still Uncertain as Voters Approve Adult-Use Legalization Measure
  •  
  • New Mexico

  • Judge Strikes Down State’s Plant-Count Restrictions on Licensed Businesses, Calls for New Rules to be Formulated that Could Increase Supply
  • New Governor-Elect Has Expressed Support for Legal Cannabis, a Departure from the Views of Current Governor
  •  

 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.

VISIT US AT THE MJ BIZ CONFERENCE BOOTH #3979!

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

3 August 2018.  Copyright © 2018 New Leaf Data Services, LLC.  All rights reserved

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

CANNABIS BENCHMARKS WEEKLY REPORT — October 26, 2018

CANNABIS BENCHMARKS WEEKLY REPORT — PUBLISHED October 26, 2018

U.S. Cannabis Spot Index down 1.3% to $1,069 per pound, reaching historic low for the Index.

 

The simple average (non-volume weighted) price decreased by nearly $4 to $1,286 per pound, with 68% of transactions (one standard deviation) in the $499 to $2,072 per pound range. The average deal size increased 3.8% to 3.9 pounds, from 3.8 pounds. In grams, the Spot price was $2.36, and the simple average price was $2.83.      

The U.S. Spot Index decreased 1.3% this week, settling at $1,069 per pound. The October average of $1,076 is a 1.6% decrease from the September average of $1,093 per pound.. The overall decrease in the national volume-weighted price was due to declines of flower prices in California, Colorado, and Washington. Reports from our analysts indicate that many outdoor cultivators are actively harvesting, drying, and curing this seasons crop. As more outdoor product comes to market the saturation of supply will potentially drive a decline in price as has been experienced in previous November time frames.

 

Last year, the U.S. Spot Index was observed to rise 5% between the last week in October and the second week of November, when fresh outdoor product is at a premium, before falling to its annual low of $1,368 per pound in the third week of November.

The downward momentum of the U.S. Spot’s trend line advanced this week due to the 1.3%, or $15, drop observed for the weekly national composite price. The Trailing 4-Week Average of California’s Spot Index continued its decline due to yet another historic low rate of the state composite index. The trend line of Colorado’s composite price also experienced a decline to an historic low, pushing the Trailing 4-Week Average for the state down. The Trailing 4-Week Average of Nevada’s Spot rebounded slightly this week, albeit by a small margin, after three straight weeks of falling composite prices in the state.

November Forward closes unchanged at $1,000 per pound.

 

The average reported forward deal decreased to 53 pounds. The proportion of forward deals for outdoor, greenhouse, and indoor-grown flower represented 53%, 32%, and 15% of forward arrangements, respectively. The average forward deal size for monthly delivery for outdoor, greenhouse, and indoor-grown flower was 68 pounds, 37 pounds, and 35 pounds, respectively.

 

At $1,000 per pound, the November Forward represents a discount of 6.5% relative to the current U.S. Spot Price of $1,069 per pound. The premium or discount for each Forward price, relative to the U.S. Spot Index, is illustrated in the table below.

 

 

Visit Our Blog To Find Out The Latest On Canadian Wholesale Markets

 

Sample headlines from this week’s Premium Report:

  • U.S.

    Detailed Q3 Review & Analysis including Spot Price Observations Histogram, Quarterly Averages, and  Volume Discount Curve

  • State-by-State Q3 Review & Analysis

  • Colorado

    Marijuana Enforcement Division Completes Final Draft of New Regulations

  • Michigan

    Pre-Licensed and Unlicensed Dispensaries Ordered to Close By October 31

  •  

 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

CANNABIS BENCHMARKS WEEKLY REPORT — October 19, 2018

CANNABIS BENCHMARKS WEEKLY REPORT — PUBLISHED October 19, 2018

U.S. Cannabis Spot Index up 1% to $1,084 per pound.

 

The simple average (non-volume weighted) price increased by $21 to $1,289 per pound, with 68% of transactions (one standard deviation) in the $489 to $2,089 per pound range. The average deal size increased 1.6% to 3.8 pounds, from 3.7 pounds. In grams, the Spot price was $2.39, and the simple average price was $2.84.

The relative frequency of trades for both indoor and greenhouse flower increased slightly this week, by a bit more than 1% and less than 1%, respectively, resulting in a corresponding decrease in this metric for transactions involving greenhouse product. Outdoor-grown flower’s share of the total reported weight moved increased again this week, by less than 2%. The entirety of the corresponding contraction was taken from the relative volume of warehouse product, while that for greenhouse flower was flat week-over-week.       

The downward momentum of the U.S. Spot’s trend line continued this week, but slowed noticeably due to the uptick observed for the weekly national composite price. The same applies to the Trailing 4-Week Average of California’s Spot Index, which persisted in its decline due to last week’s historic low rate. The trend line of Colorado’s composite price reversed course this week, declining by $3 after last week’s $1 rise, but remained the most stable of the trend lines depicted in the chart below. After being on the rise since mid-August, the Trailing 4-Week Average of Nevada’s Spot began to show downward momentum this week, after two straight weeks of falling composite prices in the state.   

The national volume-weighted price for flower to be sold in adult-use markets rose slightly this week, as upticks in the recreational sector in California, as well as Oregon’s Spot Index, overrode modest downturns in Colorado, Washington State, and Nevada. Rises in the medical markets of California and Arizona were primarily responsible for the marginal bump in the national rate for product to be sold to registered patients, as many of the smaller medical markets saw declines in their Spot Indices this week.     

November Forward unchanged at $1,000 per pound.

 

The average reported forward deal decreased to 57 pounds. The proportion of forward deals for outdoor, greenhouse, and indoor-grown flower represented 51%, 34%, and 15% of forward arrangements, respectively. The average forward deal size for monthly delivery for outdoor, greenhouse, and indoor-grown flower was 74 pounds, 38 pounds, and 36 pounds, respectively.

 

At $1,000 per pound, the November Forward represents a discount of 7.7% relative to the current U.S. Spot Price of $1,084 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

    State Spot Index is Declining Overall This Harvest Season, But by a Smaller Magnitude Than Last Year

  • Colorado

    Retail Demand Reaches New Record High in August, But Contemporaneous Wholesale Prices Still Trended Downward

  • Oregon

    Composite Price Rises for Second Week in a Row, as Volume-Weighted Rate for Outdoor Flower Falls to Historic Low for That Grow Type in Any Market

  • Washington

    State Spot Index Sinks to Historic Low for Any Market This Week, Settling Below $600 Per Pound

  • Massachusetts

  • Two Testing Labs Receive Final Approval for Adult-Use Licenses
  •  
  • Arizona

  • September Sales Volume to Patients Subsides Slightly After Reaching Record Levels in August, While State Spot Index Continued to Rise on Generally Robust Demand

NEW VIDEO! 

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

CANNABIS BENCHMARKS WEEKLY REPORT — October 12, 2018

CANNABIS BENCHMARKS WEEKLY REPORT — PUBLISHED October 12, 2018

U.S. Cannabis Spot Index down 0.3% to $1,073 per pound.

 

The simple average (non-volume weighted) price increased by $13 to $1,268 per pound, with 68% of transactions (one standard deviation) in the $483 to $2,054 per pound range. The average deal size declined 12% to 3.7 pounds, from 4.2 pounds. In grams, the Spot price was $2.37, and the simple average price was $2.80.

The relative frequency of trades for each grow type was very steady compared to last week. The only shift discernible in the chart below is a marginal decline in that metric for deals involving greenhouse flower. In a signal that the fall harvest is beginning to come to market, outdoor product’s share of the total documented weight moved swelled by almost 5% compared to last week. The relative volumes of indoor and greenhouse flower declined by about 3% and 1%, respectively, week-over-week.      

Washington State’s Spot Index experienced a significant downturn this week, falling to $606 per pound, a historic low for that market and just $5 above the all-time low for any market, documented last week in Oregon. California’s Spot this week also represents a historic low for the Golden State, at $1,053 per pound. Washington, D.C.’s Spot Index ascended to a year-to-date high this week, of $2,853 per pound.

The national volume-weighted price for flower to be sold in adult-use markets jumped by almost 4% this week, due almost entirely to an uptick in that sector of California’s market, while Oregon’s Spot also saw a slight increase. Falling prices for medical flower in California, as well as a decline in Arizona’s Spot Index, were primarily responsible for pulling down the national volume-weighted rate for product designated for sale to patients.    

November Forward unchanged at $1,000 per pound.

 

The average reported forward deal increased to 58 pounds. The proportion of forward deals for outdoor, greenhouse, and indoor-grown flower represented 50%, 35%, and 15% of forward arrangements, respectively. The average forward deal size for monthly delivery for outdoor, greenhouse, and indoor-grown flower was 79 pounds, 37 pounds, and 38 pounds, respectively.

 

At $1,000 per pound, the November Forward represents a discount of 6.8% relative to the current U.S. Spot Price of $1,073 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

    Relative Volume of Outdoor Flower Increases to Constitute Half of Reported Weight Moved, Pulling Spot Index to New Historic Low for the State

  • Colorado

    Volume-Weighted Price for Indoor Product Falls to All-Time Low for Colorado, Approaching $900 Per Pound
  •  
  • Oregon

    Wholesale Rates Tick Upward Marginally and Momentarily, Even as “Many” Outdoor Farmers Reported to be Selling Product at a Loss

  • Washington

    Spot Index Slides to Historic Low for the State as Trading of Outdoor Flower Increases with the Fall Harvest

  • Nevada

  • Sales in the Adult-Use Sector Top $40 Million for the Third Consecutive Month in July, But Production Appears to be Keeping Pace with Demand as State Spot Sank in that Month

 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

CANNABIS BENCHMARKS WEEKLY REPORT — October 5, 2018

CANNABIS BENCHMARKS WEEKLY REPORT — PUBLISHED October 5, 2018

U.S. Cannabis Spot Index up 0.2% to $1,077 per pound.

 

The simple average (non-volume weighted) price decreased by $7 to $1,255 per pound, with 68% of transactions (one standard deviation) in the $457 to $2,053 per pound range. The average deal size declined 2.6% to 4.2 pounds. In grams, the Spot price was $2.37, and the simple average price was $2.77.

The relative frequency of trades for indoor and outdoor flower both increased this week, by 1% each, resulting in a 2% decline in this metric for deals involving greenhouse product. Both warehouse and greenhouse flower saw their shares of the total reported weight moved nationwide shrink slightly this week, by about 1% each. Correspondingly, the relative volume of outdoor-grown product increased by 2% week-over-week, perhaps signalling the beginning of the fall harvest coming to market.    

The average composite transaction volume contracted again this week, due nearly entirely to a sharp decrease in the mean size of trades for warehouse flower. Meanwhile, the average size of deals for greenhouse product saw its decline slow compared to last week, while that for outdoor flower was on the rise. After four consecutive weeks of declines, the volume-weighted price for indoor product ticked upward this week, and was primarily responsible for boosting the national average, with assistance from marginal increases in the going rates of the other grow types.

The national volume-weighted price for flower to be sold in adult-use markets decreased again this week, as downturns in Colorado, Oregon, and Washington State overwhelmed increases in Nevada, Alaska, and California’s recreational sector. Increases in the Spot Indices of medical-only markets such as Arizona, Michigan, Illinois, and New Mexico lifted the national average for product designated for registered patients.  

April 2019 Forward initially assessed at $1,025 per pound.

 

The average reported forward deal was nominally unchanged at 57 pounds. The proportion of forward deals for outdoor, greenhouse, and indoor-grown flower represented 48%, 36%, and 16% of forward arrangements, respectively. The average forward deal size for monthly delivery for outdoor, greenhouse, and indoor-grown flower was 79 pounds, 37 pounds, and 38 pounds, respectively.

 

At $1,000 per pound, the November Forward represents a discount of 7.1% relative to the current U.S. Spot Price of $1,077 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

    Spot Index Slips to Record Low for the State, Falling Below $1,100 Per Pound on Increased Relative Volume of Lower-Priced Outdoor Flower

  • Colorado

  • MED Data Shows Flower Production Outpaced Sales Volume by Over 50% in H1 2018
  • Volume-Weighted Price for Indoor-Grown Product Drops to Historic Low for the State
  •  
  • Oregon

    New All-Time Low Spot Rate for Any Market Established in Oregon for the Third Consecutive Week, As Reported Transaction Stats Indicate Fall Harvest Has Yet to Reach Market

  • Washington

    Volume-Weighted Price for Greenhouse Flower Again Falls to Record Low for the Grow Type in Any Market, Pulling Down Composite Price to a Historic Trough for the State

  • Michigan

  • State Regulators Move Up Deadline for Businesses to Get Licensed or Shut Down, With Existing Product Required to be Liquidated or Destroyed Within 30 Days of Licensure

 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