The U.S. Cannabis Spot Index increased 5.6% to $1,040 per pound.
In grams, the Spot price was $2.29.
U.S. wholesale spot price is making continued progress on the upside, jumping $55 this week – the week of the 4/20 industry holiday – as legacy and newer market prices stabilize and climb. Colorado spot jumped $10 this week and Oregon spot shot up $81 per wholesale pound. Washington State slipped $6 per wholesale pound while California spot fell $12, but is still in a five-month uptrend.
Massachusetts led New England spot prices higher, gaining $244 on the week. Maine spot jumped $54. Rhode Island managed to gain $9 per wholesale pound, while Connecticut spot price was unchanged on the week. Vermont spot price slipped $11. Looking across the region, recent gains and steadiness in the market are likely a reflection of the beginning of the Spring / Summer high season, which should extend through Labor Day.
There’s also been talk of a doubling of cannabis prices in Missouri as demand is apparently outstripping supply, a not unusual circumstance in new adult use markets. As noted here, the boom / bust price cycle of cannabis markets has sped up due to efficiencies created by the industry, even as states recognize the perils of unlimited and fast licensing. Northeast states have incorporated this knowledge into their adult use market rollouts, slowing the pace of licensing and even using it as a regulatory tool to keep their new markets from cratering prices and folding businesses.
At the end of the day, cannabis is an agricultural product and, as it moves toward commoditization, efficiencies will continue to build and prices will normalize – a situation that East Coast regulators are keenly aware of as they build adult use market infrastructure – rules and regulations – that will govern the industry. This week we spoke to John Kagia, Policy Director for the New York Office of Cannabis Management (OCM) about how OCM is rolling out the state’s licensed cannabis industry.
May 2023 Implied Forward unchanged at $1,015 per pound.
At $1,015 per pound, the May 2023 Implied Forward represents a discount of 2.4% relative to the current U.S. Spot Price of $1,040 per pound.
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“Start Low and Go Slow” – Interview with OCM Policy Director