U.S. Cannabis Spot Index — January 11, 2019

U.S. Cannabis Spot Index — Published January 11, 2019

U.S. Cannabis Spot Index down nominally 0.2% at $1,163 per pound.

 

The simple average (non-volume weighted) price decreased by $36 to $1,257 per pound, with 68% of transactions (one standard deviation) in the $496 to $2,017 per pound range. The average reported deal size declined to 4.0 pounds this week from 4.1 pounds last week. In grams, the Spot price was $2.56, and the simple average price was $2.77.

 

The relative frequency of trades for indoor flower grew this week, by 1%, while that for greenhouse product decreased by the same proportion. The relative frequency of transactions for outdoor flower was unchanged compared to last week. Warehouse product’s share of the total reported weight moved nationally grew by 3% this week, while the relative volumes of greenhouse and outdoor flower contracted by 1% and 2%, respectively. The relative volume of outdoor product is down from its harvest-season peak of 33%, where it settled over several weeks in November.

The U.S. Spot Index slipped downward for the second consecutive week, decreasing slightly, by 0.2%, to $1,163 per pound. Prices for indoor flower dipped notably in multiple major markets this week, which depressed the national average for such product and pulled down the U.S. composite rate. The nation’s two largest markets – California and Colorado – saw their Spot Indices hold fairly steady compared to last week, with both seeing nominal rises, with the same going for Nevada. Meanwhile, Oregon and Arizona were the two most sizeable state markets to see downturns in their composite prices, while decreases in the Spot prices of Illinois and New Mexico also applied downward pressure on the national average. Overall, this week’s U.S. Spot Index is down by 13.2% year-over-year, compared to the rate of $1,340 per pound documented in the week ending January 12, 2017.

The national volume-weighted price for flower to be sold in adult-use markets rose slightly this week. Rising rates in Colorado, Washington, and Nevada, with assistance from upticks in Alaska and Massachusetts, outweighed a decrease in Oregon. The composite price in California’s adult-use sector was virtually flat week-over-week. Sinking wholesale rates in Arizona, Illinois, and New Mexico were primarily responsible for a marginal decrease in the national price for product designated for registered patients.     

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

 

The average reported forward deal size declined nominally to 55.2 pounds. The proportion of forward deals for outdoor, greenhouse, and indoor-grown flower was 55%, 29%, and 17% of forward arrangements, respectively. The average forward deal size for monthly delivery for outdoor, greenhouse, and indoor-grown flower was 62 pounds, 49 pounds, and 43 pounds, respectively.

 

At $1,100 per pound, the February 2019 Forward represents a discount of 5.4% relative to the current U.S. Spot Price of $1,163 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 Climbs Gradually in Early Weeks of 2019, Continuing Trend from End of 2018

  • Colorado

    December’s Monthly Spot Index Up Over 9% Compared to Prior Month, But Quarterly Composite Prices Virtually Flat from Q3 to Q4 2018

  • Oregon

  • Volume-Weighted Price for Indoor Flower Declines for Fifth Straight Week, Falls to Historic Low for Oregon’s Market
  •  
  • Washington

  • Average Spot Rate for Q4 2018 Down by 18% Compared to Previous Quarter
  •  
  • Massachusetts

  • Spot Index Rises for Twelfth Consecutive Week, Exceeding 2018’s Annual High Price
  •  
  • Illinois

  • Medical Market Expands Dramatically in 2018: Retail and Wholesale Revenues Up by 58% and 55%, Respectively, from 2017, Driving 17% Rise in Spot Index Over the Course of Last Year

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

11 January 2019.  Copyright © 2019 New Leaf Data Services, LLC.  All rights reserved

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