CANNABIS BENCHMARKS WEEKLY REPORT -- PUBLISHED MAY 11, 2018
U.S. Cannabis Spot Index down 1.2% to $1,288 per pound.
The simple average (non-volume weighted) price decreased by $33 to $1,382 per pound, with 68% of transactions (one standard deviation) in the $646 to $2,117 per pound range. The average deal size decreased 1.7% to 5.4 pounds from 5.5 pounds last week. In grams, the Spot price was $2.84, and the simple average price was $3.05.
National Transaction Stats were again largely stable for the third consecutive week. The relative frequency of transactions for greenhouse flower documented nationwide increased by 1% week-over-week, at the expense of deals for outdoor product. The relative volumes of each individual grow type were essentially identical to those documented last week. Summer greenhouse harvests could shake up these metrics in the months to come, as could the injection of supplies into markets by sellers currently sitting on excess inventory.
The U.S. Spot Index continued to tick downward, experiencing a modest decline for the sixth consecutive week. Outdoor flower saw both its volume-weighted average price and its average deal size increase week-over-week, while the other two grow types were observed to experience decreases in each of those metrics. A year ago at this time, the national composite average transaction volume was documented at 7.8 pounds, almost 45% larger than this week’s.
Despite downturns in most individual medical-only markets, week-over-week rises in the Spot Indices of Michigan and Illinois, as well as the medical sector of California’s market, pushed up the national price for flower to be sold to registered patients. Every functioning adult-use market in the U.S. saw a downturn in its composite volume-weighted average this week.
June Forward unchanged at $1,350 per pound.
The average forward deal was just under 61 pounds. The proportion of forward deals for outdoor, greenhouse, and indoor-grown flower represented 50%, 33%, and 17% of forward arrangements, respectively. The average forward deal size for monthly delivery for outdoor, greenhouse, and indoor-grown flower was 62 pounds, 70 pounds, and 43 pounds, respectively.
At $1,350 per pound, the June Forward represents a premium of 4.8% relative to the current U.S. Spot Price of $1,288 per pound. The premium or discount for each Forward price, relative to the U.S. Spot Index, is illustrated in the table below.
The histogram below illustrates all observed transactions - by grow type and price range - included in this week’s benchmark price assessments, excluding outliers.
Nearly 50% of transactions for outdoor sun-grown flower were priced at or below $750 per pound, and 87% were priced at or below $1,000 per pound. In contrast, 17% of greenhouse-grown flower deals were priced at or below $750 per pound, while the majority - 66% - where priced between $751 and $1,000 per pound. Only 13% and 18% of outdoor and greenhouse-grown flower deals, respectively, were priced above $1,000.
As the chart illustrates, transactions for indoor-grown flower spanned the full spectrum of prices, with deals priced as low as $450 per pound in Washington State and Oregon, and deals exceeding $3,000 per pound in multiple states
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11 May 2018. Copyright © 2018 New Leaf Data Services, LLC. All rights reserved