CANNABIS BENCHMARKS WEEKLY REPORT — December 14, 2018

CANNABIS BENCHMARKS WEEKLY REPORT — PUBLISHED December 14, 2018

U.S. Cannabis Spot Index up 3.8% to $1,131 per pound.

 

The simple average (non-volume weighted) price increased by $63 to $1,279 per pound, with 68% of transactions (one standard deviation) in the $514 to $2,044 per pound range. The average deal size was nominally unchanged at 4.2 pounds. In grams, the Spot price was $2.49, and the simple average price was $2.82.

 

The relative frequency of trades for indoor flower grew this week, by 2%, while that for greenhouse product decreased by the same proportion. The relative frequency of transactions for outdoor flower was unchanged compared to last week, as was the relative volume of such product. Warehouse-grown flower’s share of the total reported weight moved nationwide increased by over 2% this week, while the relative volume of greenhouse product contracted by the same proportion.    

The U.S. Spot Index jumped by 3.8% this week to settle at $1,131 per pound, the highest national composite price documented since July. While 12 of the 17 state markets covered by our reporting were observed to see week-over-week upticks in their Spot Indices, the overall increase in wholesale pricing at the national level was driven primarily by upward-trending rates in California and Colorado. The latter state’s wholesale market appears to be bucking last year’s trends, which saw prices fall to  what were then record lows to close 2017. Washington State was the only major market to see its composite rate decline this week, the continuation of a recent trend that has resulted in the repeated establishment of new historically low prices.

The national volume-weighted prices for flower to be sold in adult-use and medical markets both increased by magnitudes similar to the U.S. Spot Index this week. In the adult-use realm, only Washington State saw a week-over-week drop in wholesale prices. Most medical cannabis markets covered by our reporting was observed to see rising rates, apart from small declines documented in Arizona, Maine, New Mexico, and Vermont.  

January 2019 Forward up $35 to $1,100 per pound.

 

The average reported forward deal decreased nominally to 57.2 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 65 pounds, 49 pounds, and 43 pounds, respectively.

 

At $1,100 per pound, the January 2019 Forward represents a discount of 2.7% relative to the current U.S. Spot Price of $1,131 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

    Prices for Indoor and Greenhouse Flower Rise to Highest Points Since April and May, Respectively

  • Colorado

    Spot Index Trended Downward in October as Total Retail Sales Contracted for the Second Consecutive Month

  • Oregon

  • State Data Shows 2018 Harvest Just as Large as Last Year’s, Resulting in Almost 1.3 Million Pounds of Unsold Product in Licensed System as of Early December
  •  
  • Washington

  • Volume-Weighted Price for Indoor Flower Reported to Fall Below $700 Per Pound for the First Time in Any Market
  •  
  • Nevada

  • New Adult-Use Retail Licenses Issued, Nearly Doubling Current Number of Open Shops; Eventual Effect on Wholesale Pricing Contingent on Numerous Factors
  •  
  • Illinois

  • Strong Demand Continues in November, While Wholesale Pricing Holds Steady

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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

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