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.
June Sales Down 21.5% Year-on-Year as Pandemic Effects Recede
Consequences Phase in Full Bloom – Interview
July Sales Soar over 21% – Another New Record
July Adult Use Sales Jump 11%