U.S. Cannabis Spot Index up 1.7% to $1,350 per pound.
The simple average (non-volume weighted) price increased $65 to $1,557 per pound, with 68% of transactions (one standard deviation) in the $822 to $2,292 per pound range. The average reported deal size increased to 2.5 pounds from 2.3 pounds last week. In grams, the Spot price was $2.98 and the simple average price was $3.43.
The relative frequency of trades for outdoor flower decreased by over 3% week-over-week. The relative frequency of transactions involving indoor and greenhouse product increased by about 2% and 1%, respectively. Warehouse flower’s share of the total documented weight moved nationally contracted by almost 2% this week. The relative volume of outdoor product expanded by the same magnitude, while that for greenhouse flower was stable.
The U.S. Spot Index rose by 1.7% this week to settle at $1,350 per pound. Although rates for all three grow types were on the upswing, the potential for a larger increase in the national composite price was tempered by another expansion in the relative volume of outdoor-grown flower.
As we noted last week, California’s market has seen a surge of sun-grown supply recently as light-deprivation harvests are dried, trimmed, and brought to market. While that trend persisted this week, increases in the relative volume and average deal size for outdoor product in the Golden State were smaller than those documented in prior weeks.
In contrast, Oregon and Washington State reported transaction stats indicate that wholesale buyers continue to favor indoor flower this summer, with increasing relative volumes of such product helping to push up Spot prices in those markets.
The national volume-weighted price for flower to be sold to general consumers rose slightly this on increases in that sector of the market in Colorado, as well as in Oregon and Alaska.
Prices for medical flower recovered a bit after last week’s significant decline. Rates for product designated for registered patients were on the rise in California, Arizona, Michigan, Maine, and New Mexico, as well as some smaller markets.
September Forward assessed up $50 to $1,290 per pound.
The average reported forward deal size was 47 pounds. The proportion of forward deals for outdoor, greenhouse, and indoor-grown flower was 55%, 29%, and 17% 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 62 pounds, respectively.
At $1,290 per pound, the September Forward represents a discount of 4.5% relative to the current U.S. Spot Price of $1,350 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
Colorado
State Spot Index Climbs to Another Year-to-Date High as Historical Data Indicates Demand is Reaching its Highest Point of the Year
Oregon
Washington
Nevada
Arizona