U.S. Cannabis Spot Index — February 15, 2019

U.S. Cannabis Spot Index — Published February 15, 2019

U.S. Cannabis Spot Index up 1.7% at $1,162 per pound.

 

The simple average (non-volume weighted) price decreased by $25 to $1,223 per pound, with 68% of transactions (one standard deviation) in the $425 to $2,020 per pound range. The average reported deal size was nominally unchanged at 3.2 pounds. In grams, the Spot price was $2.56, and the simple average price was $2.70.


The relative frequency of trades for both indoor and outdoor flower increased week-over-week, by 1% each, while transactions involving greenhouse product saw a 2% decline in this metric. Warehouse flower’s share of the total reported weight moved nationwide grew slightly this week, by 1%, with the relative volume of greenhouse product contracting by the same proportion. Outdoor product is the only grow type to see its relative volume exceed its relative frequency of trades.   

The U.S. Spot Index increased by 1.7% this week to settle at $1,162 per pound. Oregon and Arizona were the only sizeable markets to see downturns in their composite prices this week, which were overwhelmed by increases in the Spot Indices of California, Colorado, Washington State, and Nevada. Smaller markets such as Massachusetts, Michigan, Illinois, and Maine have also applied consistent upward pressure on the national volume-weighted average this year. Based on historical sales data from more mature adult-use markets, January and February are typically months that see lulls in sales compared to the higher-demand months of December and March. While the U.S. Spot Index did dip in the latter weeks of January and the early ones of February, this week’s price is virtually identical to the rate of $1,165 per pound, observed at the outset of the year.  

The national volume-weighted price for flower to be sold in adult-use markets jumped this week, primarily due to rises in California, Colorado, Washington, and Nevada. Declines in the medical markets of Arizona and New Mexico pulled down the national price for product designated for registered patients recorded this week, with assistance decreases in the smaller markets of New Hampshire and Vermont.         

March 2019 Forward unchanged at $1,100 per pound.

 

The average reported forward deal size decreased to 49.3 pounds. The proportion of forward deals for outdoor, greenhouse, and indoor-grown flower was 55%, 28%, and 17% of forward arrangements, respectively. The average forward deal size for monthly delivery for outdoor, greenhouse, and indoor-grown flower was 53 pounds, 45 pounds, and 43 pounds, respectively.

 

At $1,100 per pound, the March Forward represents a discount of 5.3% relative to the current U.S. Spot Price of $1,162 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

    Rising Volume-Weighted Prices for Indoor Flower Persist This Week, Now Up by Almost 7% from Beginning of 2019

  • Colorado

    Monthly Sales Increase in December 2018, Total Retail Revenues Reach $1.54 Billion for Last Year

  • Oregon

  • State Spot Index Drops to Within a Few Dollars of Historic Low Established in October 2018
  •  
  • Washington

  • Notable Homogeneity Observed in Pricing of Individual Wholesale Transactions Across All Grow Types
  •  
  • Michigan

  • State Officials Project About $300 Million in Retail Sales from Medical Cannabis Program in Period from October 2018 through September 2019, But Early Revenue Figures Reported to be Low
  •  
  • Illinois

  • Monthly Cultivator Revenues Reach Record High for State’s Market in January 2019 as State Spot Index Continues to Trend Upward

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

15 February 2019.  Copyright © 2019 New Leaf Data Services, LLC.  All rights reserved

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