U.S. Cannabis Spot Index — March 8, 2019

U.S. Cannabis Spot Index — Published March 8, 2019

U.S. Cannabis Spot Index down 1.1% to $1,100 per pound.

 

The simple average (non-volume weighted) price increased $16 to $1,185 per pound, with 68% of transactions (one standard deviation) in the $409 to $1,962 per pound range. The average reported deal size increased to 3.1 pounds. In grams, the Spot price was $2.42, and the simple average price was $2.61.

 

The relative frequency of trades for indoor flower decreased week-over-week by 2%. The relative frequency of transactions involving greenhouse product decreased by the same proportion, while that for deals for outdoor flower was unchanged. Warehouse flower’s share of the total reported weight moved nationwide contracted by 1% compared to last week. The relative volume of greenhouse product increased by the same magnitude, while that for outdoor flower was stable week-over-week.   

The U.S. Spot Index ticked downward for the third consecutive week, by 1%, to settle at $1,100 per pound. Last year at this time, the national composite price had been on the rise for four straight weeks, behavior that would continue for another three consecutive weeks afterward.

 

Falling prices in California, Oregon, and Nevada have been primarily responsible for the downturn in the U.S. Spot Index so far this year, outweighing gradual gains in the more mature licensed adult-use markets of Colorado and Washington State. With upward momentum in the latter appearing to level off in recent weeks, further downward pressure on the national average could come from the Evergreen State in the near future.

The national volume-weighted price for flower to be sold in adult-use markets this week continued the downward slide that commenced in  late February on decreases in California, Washington State, Nevada, and Alaska. Upticks in the medical markets of Arizona, Michigan, Illinois, and Maine – as well as a few other smaller markets – drove up the national price for product designated for registered patients recorded this week.         

April 2019 Forward unchanged at $1,075 per pound.

 

The average reported forward deal size was nominally unchanged at 47 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 51 pounds, 41 pounds, and 41 pounds, respectively.

 

At $1,075 per pound, the April Forward represents a discount of 2.2% relative to the current U.S. Spot Price of $1,100 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 Drops Below $1,100 Per Pound For the First Time Since Last Year’s Harvest Season

  • Colorado

    Composite Price Continued Upward Movement This Week, Despite Sales Trends Suggesting Plateau in Demand

  • Oregon

  • 70% of Reported Volume of Indoor Flower Traded Last Week Sold for Under $1,000 Per Pound, 28% Sold for Less Than $500 Per Pound
  •  
  • Washington

  • Bottom of State’s Wholesale Market for All Grow Types Has Shifted Downward Significantly in Past 12 Months
  •  
  • Nevada

  • Official Sales Data Shows Combined Adult-Use and Medical Cannabis Sales Topped $580 Million in 2018
  •  
  • New Mexico

  • New Interim Rule Allows Producers to Increase Plant Count by Over 5X, But How Quickly Additional Supply Can be Brought to Market is Uncertain
  •  
  • Illinois

  • Retail and Wholesale Revenues Both Reached Record Highs for State’s Medical Market in February as Spot Index Continues to Rise on Strong Demand
  •  

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

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

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