U.S. Cannabis Spot Index — February 22, 2019

U.S. Cannabis Spot Index — Published February 22, 2019

U.S. Cannabis Spot Index down 0.7% at $1,153 per pound.

 

The simple average (non-volume weighted) price was nominally unchanged at $1,223 per pound, with 68% of transactions (one standard deviation) in the $414 to $2,031 per pound range. The average reported deal size declined to 3.1 pounds. In grams, the Spot price was $2.54, and the simple average price was $2.70.

 

The relative frequency of trades for indoor flower increased week-over-week, by 2%, while transactions involving greenhouse product saw a decline in this metric of the same proportion. Warehouse flower’s share of the total reported weight moved nationwide shrank slightly this week, by about 1%, with the relative volumes of greenhouse and outdoor product both expanding modestly, by less than 1% each. The relative stability of national Transaction Stats in recent weeks belies their diversity in the major state markets, illustrated below.

The U.S. Spot Index declined by 0.7% this week to settle at $1,153 per pound. The volume-weighted price for indoor flower, which had risen fairly steadily from mid-January, leveled off this week. On a state level, Colorado was the only one of the major Western markets to see an increase in its Spot rate, while Massachusetts was the only other state with a functioning adult-use market to see an increase in its overall going price, and a relatively small one at that. The national composite rate averaged $1,154 per pound for February, off nominally from January’s monthly mean of $1,157 per pound. In 2018, the U.S. Spot Index slipped by 4.8% from January to February, from $1,343 to $1,279 per pound. Of the major and secondary state markets, only prices in Oregon and Nevada are currently displaying behavior at least somewhat similar to observations from the first two months of 2018.    

The national volume-weighted price for flower to be sold in adult-use markets slipped this week on decreases in California, Oregon, Washington, Nevada, and Alaska. Declines in the medical market of Arizona pulled down the national price for product designated for registered patients recorded this week, even as numerous other smaller medical systems saw upticks.        

March 2019 Forward assessed up $50 at $1,150 per pound.

 

The average reported forward deal size decreased to 48 pounds. The proportion of forward deals for outdoor, greenhouse, and indoor-grown flower was 56%, 28%, and 16% of forward arrangements, respectively. The average forward deal size for monthly delivery for outdoor, greenhouse, and indoor-grown flower was 52 pounds, 44 pounds, and 43 pounds, respectively.

 

At $1,150 per pound, the March Forward represents a discount of 0.3% relative to the current U.S. Spot Price of $1,153 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

    Tax Department Data Shows Volume of Flower Sold by Cultivators Increased by 10% in Q4, while Amount of Leaves and Trim Moved by Growers More Than Doubled

  • Colorado

    Denver’s Local Market Likely to See Total Cannabis Sales Decline in 2018 and Account for Smaller Percentage of Statewide Retail Revenues Compared to 2017

  • Oregon

  • Spot Index Sinks to Historic Low for State’s Market, Settling at Less Than $600 Per Pound; State Lawmakers to Discuss Bill That Would Give Regulators Authority to Cease Issuing Cultivation Licenses
  •  
  • Washington

  • Gradual Declines in the Relative Volume of Outdoor Flower Subsequent to 2018’s Fall Harvest Have Contributed to the Recent Rise in the State Spot Index
  •  
  • Arizona

  • Medical Cannabis Sales Decline in January from December’s Record Highs, but Demand Remains Strong Overall as Patient Based Continues to Expand

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

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

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