Cannabis benchmarks weekly report - Week ending Nov 24, 2017
U.S. Cannabis Spot Index up 1.7% to $1,392 per pound.
The simple average (non-volume weighted) price increased $9 to $1,721 per pound, with 68% of transactions (one standard deviation) in the $981 to $2,460 per pound range. The average deal size decreased 1.8% to 14.4 pounds from 14.7 pounds last week. In grams, the Spot price was $3.07, and the simple average price was $3.79.
Each grow type’s share of the total reported volume traded fluctuated very little week-over-week. An under 2% decline in the relative volume of indoor product resulted in a corresponding increase in that of outdoor-grown flower, with the relative volume of greenhouse product holding steady at just under a third of the total observed weight moved. The relative frequency of trades for warehouse flower declined by 3% compared to last week, with the corresponding increase accruing entirely to field-grown product.
Indoor flower spanned from $800 to $5,400 per pound; the median price was $1,900/lb.
Greenhouse flower spanned from $900 to $3,000 per pound; the median price was $1,155/lb.
Outdoor flower spanned from $600 to $2,500 per pound; the median price was $1,000/lb.
The U.S. Spot Index ticked upward slightly this week to recover from last week’s year-to-date low. Volume-weighted average prices for each grow type were up across the board, while average deal sizes for each grow type contracted. In both cases, outdoor flower experienced the largest proportional week-over-week change, while those undergone by indoor and greenhouse product were comparatively minor.
The table below illustrates the U.S. Spot Index, along with the volume weighted averages for all transactions accompanied by a medical or recreational / adult-use designation.
The national volume-weighted average prices for product traded in medical and adult-use markets both ticked upward this week by proportions commensurate with that of the overall U.S. Spot’s increase. Rises in California’s and Arizona’s composite prices, as well as a 4.7% bump in rates in Oregon’s medical sector, pushed up the nationwide price for such flower. On the adult-use side, modest uptick in Washington State was enough to overcome a marginal decline in Colorado.
December Forward closes at $1,465 per pound.
The average forward deal was unchanged at 88 pounds. The proportion of forward deals for outdoor, greenhouse, and indoor-grown flower represented 45%, 40%, and 16% of forward arrangements, respectively. The average forward deal size for monthly delivery for outdoor, greenhouse, and indoor-grown flower was 132 pounds, 58 pounds, and 42 pounds, respectively.
At $1,465 per pound, the December Forward represents a premium of 5.2% relative to the current U.S. Spot Index of $1,392 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:
Sample content from this week's Premium Report:
The U.S. Spot Index saw a 1.7% rise this week to settle at $1,392 per pound, a slight recovery from last week’s year-to-date low price of $1,368 per pound. Late buying by retailers in preparation for holiday sales and promotions may have contributed to the increase, though previous reports from market participants indicated that many wholesale buyers have been stocking up weeks early for what has become known as “Green Friday” - as opposed to Black Friday - particularly in states with adult-use markets. This week’s composite volume-weighted average rate is down by 4.7% year-over-year, compared to the Spot price of $1,461 per pound, recorded in the final week of November 2016. Last year, the U.S. Spot Index closed 2016 by rising 16.5% from its annual low of $1,386 per pound in the week ending November 11th to $1,615 per pound in the week ending December 30th.
Volume-weighted average prices for greenhouse and outdoor flower in Washington State were virtually identical this week, whereas pricing for those grow types in the markets of its West Coast neighbors diverged significantly; by almost $600 per pound in California and over $700 per pound in Oregon.
Week Ending 24 November 2017. Copyright © 2017 New Leaf Data Services, LLC. All rights reserved