CANNABIS BENCHMARKS WEEKLY REPORT -- JUNE 8, 2018
U.S. Cannabis Spot Index was unchanged at $1,237 per pound.
The simple average (non-volume weighted) price decreased by less than $4 to $1,372 per pound, with 68% of transactions (one standard deviation) in the $616 to $2,127 per pound range. The average deal size decreased 4.1% to 5.2 pounds from 5.4 pounds. In grams, the Spot price was $2.73, and the simple average price was $3.02.
National Transaction Stats maintained their recent stability this week. The relative frequency of transactions for each individual grow type was essentially unchanged from last week. Indoor-grown flower’s share of the total reported weight moved nationwide expanded a bit, by 2% week-over-week. Correspondingly, the relative volumes of greenhouse and outdoor product each contracted by 1%. The coming months could see changes in the supply mix due to summer light-deprivation harvests or the remains of last year’s crop being sold off.
The U.S. Spot Index remained at its historic low this week, despite declines in the national volume-weighted average prices of all three grow types. A 2% increase in the relative volume of indoor-grown flower - from 50% to 52% - counterbalanced downward pressure from declining greenhouse and outdoor-grown flower prices. Average deal sizes for outdoor product were back on the decline this week after a slight expansion last week, while the average size of trades for greenhouse flower continued to contract.
The national price for flower wholesaled in medical markets rose slightly this week, primarily on the back of upticks in that sector of California’s market, as well as in Michigan. Declines in the Spot Indices of Oregon and Washington State dragged down the national rate for product in adult-use systems.
July Forward unchanged at $1,400 per pound.
The average forward deal increased to 67 pounds, from 62 pounds last week, with several 200 pound per month outdoor forwards reported. The proportion of forward deals for outdoor, greenhouse, and indoor-grown flower represented 51%, 36%, and 13% of forward arrangements, respectively. The average forward deal size for monthly delivery for outdoor, greenhouse, and indoor-grown flower was 74 pounds, 67 pounds, and 43 pounds, respectively.
At $1,400 per pound, the July Forward
represents a premium of 13.2% relative to
the current U.S. Spot Price of $1,237 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:
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8 June 2018. Copyright © 2018 New Leaf Data Services, LLC. All rights reserved