August 26, 2022

U.S. Cannabis Spot Index — August 26, 2022

U.S. Cannabis Spot Index — Published August 26, 2022

The U.S. Cannabis Spot Index increased 1.4% to $1,027 per pound.

 

The simple average (non-volume weighted) price increased $9 to $1,281 per pound, with 68% of transactions (one standard deviation) in the $544 to $2,017 per pound range. The average reported deal size was unchanged at 2.5 pounds. In grams, the Spot price was $2.26 and the simple average price was $2.82.

 

The relative transaction frequency of indoor product was unchanged in the week, as were those of greenhouse and outdoor product. 

 

 

The relative volume of indoor product rose 2%, while that of greenhouse flower fell 2%. Outdoor flower’s relative volume was unchanged.

 

When asked about the availability of adult use licenses for cannabis business operations in New York, the New York State Office of Cannabis Management (OCM) replied “several foundational tasks need to be completed including issuance and adoption of regulations, hiring and training staff at OCM, and development of infrastructure necessary to accept applications.” Of the adult use licenses that will be issued, the OCM has as a goal of awarding 50% to social equity applicants. 

 

On the local level, New York City Mayor Eric Adams, in cooperation with the city’s Small Business Services, has pledged to help social equity cannabis entrepreneurs through the Cannabis NYC program. In announcing the initiative, Mayor Adams said, “The regulated adult-use cannabis industry is a once-in-a-generation opportunity for our underserved communities that have, for too long, faced disproportionate rates of drug-related incarceration to get in on the industry on the ground floor. Cannabis NYC will plant the seeds for the economy of tomorrow by helping New Yorkers apply for licenses and understand how to open and successfully run a business, while simultaneously rolling equity into our economy by giving those who have been justice-involved and those with a cannabis conviction a chance to succeed. This is about creating good jobs, successful small businesses, and finally delivering equity to communities harmed by the ‘War on Drugs.’” 

 

Initially, Cannabis NYC will offer technical assistance with license applications and “other business services.” The City is expecting 19,000 – 24,000 jobs will be created in the new cannabis industry. In addition to supporting applications for cannabis licenses, the program will “connect aspiring cannabis entrepreneurs to non cost services.” Cannabis NYC expects to expand their program as the industry grows by offering support to “non-plant touching ancillary businesses.”

 

September 2022 Implied Forward closes unchanged at $1,015 per pound.

 

The average reported forward deal size was 78 pounds. The proportions of forward deals for outdoor, greenhouse, and indoor-grown flower were 52%, 33%, and 15% of forward arrangements, respectively.

 

The average forward deal sizes for monthly delivery for outdoor, greenhouse, and indoor-grown flower were 83 pounds, 74 pounds, and 63 pounds, respectively.

 

 

At $1,015 per pound, the September 2022 Implied Forward represents a discount of 1.2% relative to the current U.S. Spot Price of $1,027 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:

Michigan and Oklahoma

Cannabis License Moratoriums – Let’s Talk About It: Interviews

New York

Adult Use Licenses – No Date Certain

Maine

Medical Cannabis Licenses Cannot be Restricted to State Residents, Court Rules

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

26 August 2022.  Copyright © 2022 New Leaf Data Services, LLC.  All rights reserved

CANADA CANNABIS SPOT INDEX — August 26, 2022

CANADA CANNABIS SPOT INDEX (CCSI) 

Week Ending August 26, 2022
CCSI image 1 2022-08-19

*The provincial excise taxes vary. Cannabis Benchmarks estimates the population weighted average excise tax for Canada.

**CCSI is inclusive of the estimated Federal & Provincial cannabis excise taxes..

The CCSI was assessed at C$5.36 per gram this week, down 0.9% from last week’s C$5.41 per gram. This week’s price equates to US$1,873 per pound at the current exchange rate.

Include your weekly wholesale transactions in our price assessment by joining our Price Contributor Network

If you have not already done so, we invite you to join our Price Contributor Network, where market participants anonymously submit wholesale transactions to be included in our weekly price assessments. It takes two minutes to join and two minutes to submit each week, and comes with loads of extra data and market intelligence.

SOURE: Cannabis Benchmarks, Health Canada
  • Statistics Canada recently published unpackaged production data through the end of 2021. The agency had previously released unpackaged production data through September 2021. The latest data shows that, through the end of 2021, total Canadian unpackaged production continued to hover slightly above 2020 levels. For 2021, total unpackaged cannabis production totalled 1.62M kg, or 9.6% more than 2020.
  • Despite several significant cultivators closing growing facilities, as we reported last month, production still increased. This indicates that a sizable portion of the licensed growing area has been grossly underutilized, and that additional closures may be on the horizon. Total licensed indoor growing area dropped by 10% in 2021, according to Statistics Canada
  • While indoor growing facilities close, we see craft growers turning to outdoor cultivation in the cold Canadian climate. Though legal cannabis produced from outdoor cultivation is frequently thought to be of lower quality, it has significantly lower production costs, making it more competitive with illicitly-produced supply. While outdoor-grown cannabis might not be as marketable for smoking compared to indoor-grown flower, cannabis grown outdoors is ideal as a raw material for extraction and the production of cannabis 2.0 products like edibles, beverages, and vapes. In 2021, the reported data shows that the country’s licensed outdoor growing area jumped by 62% year-on-year to peak at 713 acres.
  • Nevertheless, despite the growth in outdoor cultivation, Cannabis Benchmarks estimates outdoor-grown cannabis still makes up a relatively small portion of Canada’s overall cannabis production. Additionally, outdoor cultivation is seasonal, increasing the supply of cannabis in the market in late autumn, which has been shown to impact wholesale prices in U.S. cannabis markets where significant outdoor growing occurs, sometimes dramatically.
  • Cannabis Benchmarks estimates the total Canadian outdoor cannabis cultivation volume in 2021 to be approximately 210,000 kg, or approximately 13% of overall unpackaged production. This proportion is consistent with 2020. As more cannabis is cultivated outdoors, we anticipate that outdoor-grown cannabis will have a significant impact on the landscape of Canadian cultivation.

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

26 August 2022 Copyright © 2022 New Leaf Data Services, LLC.  All rights reserved

August 19, 2022

U.S. Cannabis Spot Index — August 19, 2022

U.S. Cannabis Spot Index — Published August 19, 2022

The U.S. Cannabis Spot Index increased 0.5% to $1,013 per pound.

 

The simple average (non-volume weighted) price decreased $7 to $1,271 per pound, with 68% of transactions (one standard deviation) in the $556 to $1,987 per pound range. The average reported deal size was 2.5 pounds. In grams, the Spot price was $2.23 and the simple average price was $2.80.

 

The relative transaction frequency of indoor product rose 1%, while that of greenhouse product fell 1%. Outdoor transaction frequency was unchanged. 

 

 

The relative volume of indoor product rose 2%; that of greenhouse flower fell 1%, as did that of outdoor flower.

 

The Illinois Department of Financial and Professional Regulation (IDFPR) issued an updated list of Conditional Adult Use Dispensing Organization licenses, which includes additional conditional licenses issued between July 22 and August 12, 2022. The list includes 177 Conditional Dispensary licenses. It also reiterates the Conditional Licenses cannot engage in cannabis purchasing or sales until they have been issued an Adult Use Dispensing Organization license, which requires licensees to have obtained a storefront within 180 days of being issued the Conditional license. However, Conditional licensees can request an extension of the 180 days to find a location for their businesses.

 

September 2022 Implied Forward assessed down $15 to $1,015 per pound.

 

The average reported forward deal size was 79 pounds. The proportions of forward deals for outdoor, greenhouse, and indoor-grown flower were 52%, 33%, and 15% of forward arrangements, respectively.

 

The average forward deal sizes for monthly delivery for outdoor, greenhouse, and indoor-grown flower were 85 pounds, 77 pounds, and 63 pounds, respectively.

 

 

At $1,015 per pound, the September 2022 Implied Forward represents a premium of 0.2% relative to the current U.S. Spot Price of $1,013 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:

New Jersey

Total Q2 Cannabis Sales $139 million; Recreational $79.8 million

Illinois

177 Conditional Adult Use Dispensary Licenses Now Issued

Michigan

Boom! July Sales Explode – Top $200 million

Connecticut

Deja Vu All Over Again: Lawsuits Filed Over Social Equity Licenses

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

19 August 2022.  Copyright © 2022 New Leaf Data Services, LLC.  All rights reserved

CANADA CANNABIS SPOT INDEX — August 19, 2022

CANADA CANNABIS SPOT INDEX (CCSI) 

Week Ending August 19, 2022
CCSI image 1 2022-08-19

*The provincial excise taxes vary. Cannabis Benchmarks estimates the population weighted average excise tax for Canada.

**CCSI is inclusive of the estimated Federal & Provincial cannabis excise taxes..

The CCSI was assessed at C$5.41 per gram this week, down 0.4% from last week’s C$5.43 per gram. This week’s price equates to US$1,911 per pound at the current exchange rate.

Include your weekly wholesale transactions in our price assessment by joining our Price Contributor Network

If you have not already done so, we invite you to join our Price Contributor Network, where market participants anonymously submit wholesale transactions to be included in our weekly price assessments. It takes two minutes to join and two minutes to submit each week, and comes with loads of extra data and market intelligence.

SOURE: Cannabis Benchmarks, Health Canada
  • Statistics Canada recently published unpackaged production data through the end of 2021. The agency had previously released unpackaged production data through September 2021. The latest data shows that, through the end of 2021, total Canadian unpackaged production continued to hover slightly above 2020 levels. For 2021, total unpackaged cannabis production totalled 1.62M kg, or 9.6% more than 2020.
  • Despite several significant cultivators closing growing facilities, as we reported last month, production still increased. This indicates that a sizable portion of the licensed growing area has been grossly underutilized, and that additional closures may be on the horizon. Total licensed indoor growing area dropped by 10% in 2021, according to Statistics Canada
  • While indoor growing facilities close, we see craft growers turning to outdoor cultivation in the cold Canadian climate. Though legal cannabis produced from outdoor cultivation is frequently thought to be of lower quality, it has significantly lower production costs, making it more competitive with illicitly-produced supply. While outdoor-grown cannabis might not be as marketable for smoking compared to indoor-grown flower, cannabis grown outdoors is ideal as a raw material for extraction and the production of cannabis 2.0 products like edibles, beverages, and vapes. In 2021, the reported data shows that the country’s licensed outdoor growing area jumped by 62% year-on-year to peak at 713 acres.
  • Nevertheless, despite the growth in outdoor cultivation, Cannabis Benchmarks estimates outdoor-grown cannabis still makes up a relatively small portion of Canada’s overall cannabis production. Additionally, outdoor cultivation is seasonal, increasing the supply of cannabis in the market in late autumn, which has been shown to impact wholesale prices in U.S. cannabis markets where significant outdoor growing occurs, sometimes dramatically.
  • Cannabis Benchmarks estimates the total Canadian outdoor cannabis cultivation volume in 2021 to be approximately 210,000 kg, or approximately 13% of overall unpackaged production. This proportion is consistent with 2020. As more cannabis is cultivated outdoors, we anticipate that outdoor-grown cannabis will have a significant impact on the landscape of Canadian cultivation.

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

19 August 2022 Copyright © 2022 New Leaf Data Services, LLC.  All rights reserved

August 12, 2022

U.S. Cannabis Spot Index — August 12, 2022

U.S. Cannabis Spot Index — Published August 12, 2022

The U.S. Cannabis Spot Index decreased 5.3% to $1,007 per pound.

 

The simple average (non-volume weighted) price decreased $45 to $1,279 per pound, with 68% of transactions (one standard deviation) in the $567 to $1,990 per pound range. The average reported deal size increased to 2.6 pounds. In grams, the Spot price was $2.22 and the simple average price was $2.82.

 

The relative transaction frequency of indoor product fell 2%, while that of greenhouse product rose 2%. Outdoor transaction frequency was unchanged.

 

 

The relative volume of indoor product fell 5%; that of greenhouse flower rose 1% and that of outdoor flower rose 5%.

 

The Montana Department of Revenue (MDR) issued sales data for July 2022. July 2022 total sales, at $26.5 million, were up 6.6% over June 2022 sales of $24.9 million. Adult use sales, at $19.2 million, jumped just over 11% in July, the largest month-on-month increase since the February to March 2022 increase of 17.2%. July 2022 medical sales are down for the fourth month in a row, sliding 3.5% to $7.4 million.

 

The June 2022 Yellowstone National Park flood dented the hopes of many cannabis businesses clustered along Montana’s southern border, but overall state sales have still climbed to a record high. Counties in Montana with sales over $1 million were located either near the Idaho border (a state with no legal cannabis market), the northern border of Yellowstone National Park, and / or in counties with the largest cities in the state.  

 


The National Park Service has opened the Northern and Northeastern entrances to the park to hikers and bicycle riders, but both entrances, located in Montana, remained closed to motor vehicles. Adult use sales continue to claim a larger share of total sales in the state. Since sales began in January 2022, the adult use share of the market has climbed from 58.2% to 72.2%. It remains to be seen if the surge in adult use sales in July will stick given the influx of tourists to the state despite the Yellowstone flood.

September 2022 Implied Forward assessed down $25 to $1,030 per pound.

 

The average reported forward deal size was 81 pounds. The proportions of forward deals for outdoor, greenhouse, and indoor-grown flower were 52%, 33%, and 16% of forward arrangements, respectively.

 

The average forward deal sizes for monthly delivery for outdoor, greenhouse, and indoor-grown flower were 86 pounds, 79 pounds, and 63 pounds, respectively.

 

 

At $1,030 per pound, the September 2022 Implied Forward represents a premium of 2.3% relative to the current U.S. Spot Price of $1,007 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:

Colorado

June Sales Down 21.5% Year-on-Year as Pandemic Effects Recede

Oregon

Consequences Phase in Full Bloom – Interview

Maine

July Sales Soar over 21% – Another New Record

Montana

July Adult Use Sales Jump 11%

Are you a licensed market participant in the U.S. or Canada? 

Do you support wholesale market transparency?

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

12 August 2022.  Copyright © 2022 New Leaf Data Services, LLC.  All rights reserved