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:
Relative Volume of Outdoor Flower Increases to Constitute Half of Reported Weight Moved, Pulling Spot Index to New Historic Low for the State
ColoradoVolume-Weighted Price for Indoor Product Falls to All-Time Low for Colorado, Approaching $900 Per Pound
Wholesale Rates Tick Upward Marginally and Momentarily, Even as “Many” Outdoor Farmers Reported to be Selling Product at a Loss
Spot Index Slides to Historic Low for the State as Trading of Outdoor Flower Increases with the Fall Harvest
- 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