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

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