CANADA CANNABIS SPOT INDEX — May 10, 2019

CANADA CANNABIS SPOT INDEX (CCSI) 

Published May 10, 2019

The CCSI moved higher by 6.5% to C$7.55 per gram this week, from last week’s C$7.09 per gram. This is the first week since the one ending March 1st that we have observed price movement of a magnitude greater than 5%. This week’s price equates to US$2,546 per pound at current exchange rates.

 

This week we take a look at cannabis usage in Canada during the first quarter of 2019. Statistics Canada conducts the National Cannabis Survey each quarter to assess changes in demand amongst Canadians as recreational cannabis supply and availability increases. The survey reports 5.3 million or 18% of Canadians aged 15 years and older reported using cannabis in the last three months. This was 27% higher than the previous quarter, with 646,000 new individuals reporting cannabis use for the first time in Q1 2019. Initial data from the survey also indicates that more users obtained cannabis from the legal markets. An estimated 47% of cannabis users or 2.5 million Canadians obtained cannabis from legal sources in the first three months of 2019.

Cannabis use continued to be higher among males than females.

Alberta took the top spot for cannabis usage with 22% of the population buying either legal or illegal cannabis. Ontario and British Columbia followed closely, with Quebec showing the lowest usage.

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

10 May 2019 Copyright © 2019 New Leaf Data Services, LLC.  All rights reserved

CANADA CANNABIS SPOT INDEX — May 3, 2019

CANADA CANNABIS SPOT INDEX (CCSI) 

Published May 3, 2019

The CCSI moved higher by 1.4% to C$7.09 per gram this week, from last week’s C$6.99 per gram. It appears price volatility has diminished as Canada’s market starts to work out supply issues. This week’s price equates to US$2,393 per pound at current exchange rates.

 

This week we take a look at retail sales by province. This data, which is released monthly by Statistics Canada, reports total cannabis store sales. We assume this includes both online and brick and mortar sales.

 

With five months of data now available, total sales each month have hovered around C$54 million, or C$1.8 million per day across Canada. February data shows a downturn in sales in almost every province except Quebec, Manitoba, and British Columbia. The largest drop was experienced in Newfoundland and Labrador where total sales plunged 28% compared to January.

Looking specifically at the distribution of February sales by province, we can see that Ontario, Quebec, and Alberta lead the way in sales, accounting for 63% of the retail cannabis revenues generated nationwide. This should be no surprise as these three provinces are home to 73% of Canada’s population.

Interestingly, licensed retailers in British Columbia, the third most populous province, generated only 4% of total Canadian sales in February. This discrepancy indicates that the black market is still capturing much of the province’s demand.

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

3 May 2019 Copyright © 2019 New Leaf Data Services, LLC.  All rights reserved

CANADA CANNABIS SPOT INDEX — April 26, 2019

CANADA CANNABIS SPOT INDEX (CCSI) 

Published April 26, 2019

The CCSI moved higher by 4.5% to C$6.99 per gram this week, from last week’s C$6.69 per gram. This week’s price equates to US$2,361 per pound at current exchange rates.


Last week Health Canada released their preliminary summary of February sales and inventory data from the Cannabis Tracking System. In our analysis below, we focus on the growing inventory of finished and unfinished product. February data shows finished inventory growing by 18% from January levels to 23,739 kg, while unfinished inventory grew by 4% month-over-month, to 120,731 kg.

As can be seen with each report release, there are small changes made to the previous month’s inventory figures. Total inventory with the latest release sits at 144,470 kg, which equates to approximately 20.6 month of Canada’s dry cannabis usage at current sales rates.

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

26 April 2019 Copyright © 2019 New Leaf Data Services, LLC.  All rights reserved