U.S. Cannabis Spot Index — September 6, 2019

U.S. Cannabis Spot Index — Published September 6, 2019

U.S. Cannabis Spot Index down 2.2% to $1,374 per pound.

 

The simple average (non-volume weighted) price decreased $10 to $1,596 per pound, with 68% of transactions (one standard deviation) in the $845 to $2,346 per pound range. The average reported deal size was nominally unchanged at 2.2 pounds. In grams, the Spot price was $3.03 and the simple average price was $3.52.

 

The relative frequency of trades for outdoor flower increased by 1% this week. The relative frequency of transactions involving greenhouse product decreased by the same proportion, while that for indoor flower was stable. Warehouse product’s share of the total documented weight moved nationally contracted by about 3% this week. The relative volumes of greenhouse and outdoor flower each expanded by over 1%.

 

 

The U.S. Spot Index declined by 2.2% this week to settle at $1,374 per pound. Decreases in the weekly composite prices of California and Washington State lifted the national average, outweighing small increases in the Spot rates of Colorado, Oregon, and Nevada. However, even as overall prices slipped in California and Washington, the volume-weighted rates for indoor flower in both of those states ascended to new annual peaks this week. 

 

Turning to some of the country’s mid-sized markets, Massachusetts, Illinois, and New Mexico all saw upticks in their Spot prices this week. Complete August sales figures have yet to be published for Massachusetts’ adult-use market, but demand has been climbing all year with only about a dozen producers licensed to generate supply for general consumers. Local zoning issues in Illinois are raising the possibility that the maximum of 110 adult-use storefronts may not be able to open as smoothly as some anticipated come 2020, which would stymie access and demand in the licensed system somewhat.

The national volume-weighted price for flower to be sold to general consumers was essentially flat this week, as declines in Washington State and Nevada slightly outweighed modest increases in the other adult-use markets. 

 

Prices for medical flower slipped after a significant rise last week, mainly on a sizeable week-over-week decrease in rates reported in that sector of California’s market. Several of the small East Coast medical cannabis markets also saw declines in their Spot Indices this week.

 

March 2020 Forward initially assessed at $1,225 per pound.

 

The average reported forward deal size was 45 pounds. The proportion of forward deals for outdoor, greenhouse, and indoor-grown flower was 59%, 24%, and 17% of forward arrangements, respectively. The average forward deal sizes for monthly delivery for outdoor, greenhouse, and indoor-grown flower were 43 pounds, 40 pounds, and 63 pounds, respectively.

 

At $1,200 per pound, the October Forward represents a discount of 12.6% relative to the current U.S. Spot Price of $1,374 per pound. The premium or discount for each Forward price, relative to the U.S. Spot Index, is illustrated in the table below.

Headlines From This Week’s Premium Report:

  • California

  • State Spot Index Averaged Over $1,250 Per Pound in August, the Highest Monthly Price Observed in 2019
  •  
  • Colorado

    Summer’s Upward Trend in Wholesale Prices Continued to Open September as State Spot, Rates for Indoor and Greenhouse Flower, All Climbed to New Annual Highs

  • Oregon

  • Wholesale Price Recovery Persisted in August, but Rate of Upward Momentum Slowed
  •  
  • Washington

  • Volume-Weighted Prices for Indoor and Outdoor flower Rose to New Year-to-Date Peaks this Week
  •  
  • New Mexico

  • Official Data Shows Production Expanded in Q2 Due to Increase in Allowed Plant Count; State Spot Index Decreased in that Period as Supply Outpaced Demand

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

6 September 2019.  Copyright © 2019 New Leaf Data Services, LLC.  All rights reserved

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