U.S. Cannabis Spot Index — March 1, 2019

U.S. Cannabis Spot Index — Published March 1, 2019

U.S. Cannabis Spot Index down 3.5% at $1,112 per pound.

 

The simple average (non-volume weighted) price declined $53 to $1,170 per pound, with 68% of transactions (one standard deviation) in the $395 to $1,944 per pound range. The average reported deal size declined to 3.0 pounds. In grams, the Spot price was $2.45, and the simple average price was $2.58.


The relative frequency of trades for indoor flower decreased week-over-week by 4%. The relative frequency of transactions involving greenhouse and outdoor product increased by 3% and 1%, respectively. Warehouse flower’s share of the total reported weight moved nationwide contracted by almost 4% compared to last week, while the relative volumes of greenhouse and outdoor product grew by about 1% and 2%, respectively.

The U.S. Spot Index declined by 3.5% this week to settle at $1,112 per pound, a year-to-date low at this early point in 2019. Prior upward price movement in California, Colorado, and Washington State has been tempered and reversed in recent weeks. Decreases in the Spot Indices of those aforementioned markets this week joined the downward price pressure applied by generally falling rates in Oregon and Nevada thus far in 2019 to cause the U.S. Spot’s largest decrease documented to this point in the year. However, March is a month typically marked by strong sales in adult-use markets. Last year, the U.S. Spot’s monthly average price increased by 5.2% from February to March 2018, from $1,279 to $1,345 per pound. Notably, though, the monthly composite rates of all four major Western markets, in addition to those of Nevada, Arizona, and Michigan, all experienced declines in the same span.    

The national volume-weighted price for flower to be sold in adult-use markets slipped this week on decreases in all four major Western markets, as well as Nevada’s. Declines in the medical markets of California, Michigan, and New Mexico were primarily responsible for pulling down the national price for product designated for registered patients recorded this week.        

September 2019 Forward initially assessed at $1,015 per pound.

 

The average reported forward deal size was nominally unchanged at 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, 42 pounds, and 43 pounds, respectively.

 

At $1,075 per pound, the April Forward represents a discount of 3.4% relative to the current U.S. Spot Price of $1,112 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

    Monthly Composite Price for February Down Almost 3% Compared to January’s, as March Begins with 3% Downturn in Weekly Spot Index

  • Colorado

    Transfer of Ownership and Corporate Structure Changes in Denver Cannabis Businesses Declined in 2018 Compared to 2017, Suggesting Decrease in New Investment, M&A Activity

  • Oregon

  • Spot Index Continues to Fall, Reaches New Historic Low for the State for Second Consecutive Week, February’s Monthly Composite Price Down Almost 7% from Month Prior
  •  
  • Washington

  • February’s Monthly Spot Price Up Almost 8% from January, But Weekly Composite Rate Declined for Second Consecutive Week to Open March
  •  
  • Massachusetts

  • Retail Sales in Adult-Use Sector Growing Steadily: January Saw Almost 30% Month-Over-Month Rise, February on Pace for Nearly 20% Increase
  •  
  • New Mexico

  • 450 Plant Cap on Licensed Producers Expires Today, Setting Stage for Increase in Cultivation Capacity in State’s Medical System

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

1 March 2019.  Copyright © 2019 New Leaf Data Services, LLC.  All rights reserved

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