August 16, 2019

U.S. Cannabis Spot Index — August 16, 2019

U.S. Cannabis Spot Index — Published August 16, 2019

U.S. Cannabis Spot Index down 0.7% to $1,328 per pound.


The simple average (non-volume weighted) price decreased $1 to $1,493 per pound, with 68% of transactions (one standard deviation) in the $777 to $2,208 per pound range. The average reported deal size increased to 2.3 pounds from 2.0 pounds last week. In grams, the Spot price was $2.93 and the simple average price was $3.29.


The relative frequency of trades for indoor flower increased by 1% week-over-week. The relative frequency of transactions involving outdoor product decreased by the same proportion, while that for deals for greenhouse flower was unchanged. Greenhouse flower’s share of the total documented weight moved nationally contracted by 3% this week. The relative volume of outdoor product expanded by the same magnitude, while that for warehouse flower was stable.  

The U.S. Spot Index declined by 0.7% this week to settle at $1,328 per pound. The small decline in the national composite price was due to an increase in the relative volume of lower-priced outdoor flower, as well as slight downturns in the national volume-weighted rates of the other two grow types. 


The overall expansion of the relative volume of outdoor flower nationally was driven primarily by observations out of California’s market. A significant uptick in the average deal size for such product in the Golden State, along with a small increase in its volume-weighted price, indicates that summer light-deprivation crops are coming to market. 


Meanwhile, prices in the other major Western markets continued to trend upward this week. As we detail below, record-setting demand has persisted in Colorado and Oregon. However, signs of increasing seasonal production in the latter state could be setting the stage for a reversal of the positive momentum that has characterized prices in the Beaver State since April. 

The national volume-weighted price for flower to be sold to general consumers increased this week as rises in that sector of the market in Colorado, as well as in Oregon and Washington State, outweighed declines in California and Nevada. 


Prices for medical flower sank this week. Rates for product designated for registered patients saw downturns in Michigan, Illinois, Massachusetts, Maine, and Rhode Island, as well as some smaller markets.


September Forward unchanged at $1,240 per pound.


The average reported forward deal size was nominally unchanged at 48 pounds. The proportion of forward deals for outdoor, greenhouse, and indoor-grown flower remained at 55%, 29%, and 16% of forward arrangements, respectively. The average forward deal sizes for monthly delivery for outdoor, greenhouse, and indoor-grown flower were 41 pounds, 50 pounds, and 64 pounds, respectively.


At $1,240 per pound, the September Forward represents a discount of 6.6% relative to the current U.S. Spot Price of $1,328 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:

  • California

  • Prices for Flower in State’s Adult-Use Sector Have Seen Significant Volatility So Far This Summer
  • Colorado

    Total Monthly Cannabis Sales Reach New Record in June, Topping $150 Million for the First Time as State Spot Index Climbs

  • Oregon

  • Overall Retail Demand and Sales Volume of Flower Ascend to Unprecedented Heights in July; Harvest Volume Also Expanded Significantly, Signalling Seasonal Uptick in Supply
  • Washington

  • State Regulators Consider Big Changes to Traceability & Product Testing, but Actual Implementation Still a Long Way Off
  • Massachusetts

  • Adult-Use Sales Reached Over $45 Million in July, but Growth Slowing as Pace of Licensing Continues to be Sluggish
  • Illinois

  • Demand Still Booming Through July as Both Dispensary and Cultivator Sales Again Set New Records; Monthly Retail Revenue Double That of July 2018

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

16 August 2019.  Copyright © 2019 New Leaf Data Services, LLC.  All rights reserved