U.S. Cannabis Spot Index — April 19, 2019

U.S. Cannabis Spot Index — Published April 19, 2019

U.S. Cannabis Spot Index up 1.9% to $1,089 per pound.

 

The simple average (non-volume weighted) price increased $18 to $1,179 per pound, with 68% of transactions (one standard deviation) in the $394 to $1,964 per pound range. The average reported deal size decreased to 2.8 pounds from 2.9 pounds last week. In grams, the Spot price was $2.40 and the simple average price was $2.60.

 

The relative frequency of trades for indoor flower increased week-over-week by 3%. The relative frequency of transactions involving greenhouse product decreased by the same proportion, while that for deals involving outdoor flower was unchanged. Warehouse product’s share of the total documented weight moved grew by 3% compared to last week. The relative volumes of greenhouse and outdoor product contracted by 1% and 2%, respectively.

One day ahead of 4/20, the U.S. Spot Index rose by 1.9% this week to settle at $1,089 per pound. In 2018 at this time, the national composite rate experienced its third consecutive week of declining prices, closing at $1,331 per pound after cresting as high as $1,392 per pound in the final week of March. This year, the weeks of late March and early April have seen the U.S. Spot fall to some of its lowest points thus far in 2019, a departure from the elevated rates documented at the end of March in both 2017 and 2018.  

 

Notably, the country’s five largest legal cannabis markets – California, Colorado, Washington, Oregon, and Nevada – all saw increases in their Spot Indices this week, largely in defiance of trends leading up to this weekend’s industry “holiday”.

 

Overall, the apparent impact of 4/20 on wholesale prices in those states has diminished over time. Supplies of available inventory are more ample generally, blunting the effect of any increases in demand. Additionally, reports from the field have stated that retailers often seek out lower-priced lots ahead of 4/20, so that sales and specials may be offered without impacting margins negatively.

The national volume-weighted price for flower to be sold in adult-use markets rose this week on increases in Colorado, Oregon, Washington State, and Nevada. Other states with recreational markets, such as Alaska and Massachusetts, saw declines in their Spot Indices, while California also saw a week-over-week downturn in its adult-use sector. Rising prices for medical product in California, Michigan, and New Mexico were primarily responsible for pushing up the national rate for flower to be sold to patients.      

May 2019 Forward unchanged at $1,050 per pound.

 

The average reported forward deal size declined to 43 pounds. The proportion of forward deals for outdoor, greenhouse, and indoor-grown flower was 60%, 27%, and 13% of forward arrangements, respectively. The average forward deal size for monthly delivery for outdoor, greenhouse, and indoor-grown flower was 40 pounds, 49 pounds, and 46 pounds, respectively.

 

At $1,050 per pound, the May Forward represents a discount of 3.5% 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 Slightly, Even as Price for Indoor Flower Fell to a Year-to-Date Low

  • Colorado

    Month-to-Date Average Composite Price for April Down Compared to March, A Departure from Previous Years

  • Oregon

  • Volume-Weighted Price for Greenhouse Product Fell to All-Time Low for Any Market This Week, But State Spot Index Up from Last Week’s Historic Trough
  •  
  • Washington

  • Volume-Weighted Price for Indoor Flower Up 12.5% from Beginning of April to This Week
  •  
  • Nevada

  • State Spot Index Up Almost 10% in Two Weeks Ahead of 4/20
  •  
  • Arizona

  • State Data Shows Record Sales Volume in March, But Wholesale Pricing Generally Declined
  •  
  • Illinois

  • Retail and Wholesale Sales Jumped to New Record Highs in March, As State Spot Index Climbed to Current Annual Peak  

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

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

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