Current Data

U.S. Cannabis Spot Index up 1.3% to $1,547 per pound.

The simple average (non-volume weighted) price decreased $14 to $1,762 per pound, with 68% of transactions (one standard deviation) in the $958 to $2,566 per pound range. The average reported deal size was nominally unchanged at 2.1 pounds. In grams, the Spot price was $3.41 and the simple average price was $3.88.

The relative frequency of trades for greenhouse flower decreased by over 4% this week. The relative frequencies of transactions for indoor and outdoor product increased by about 2% each.  

The relative volume of warehouse product expanded by over 4%. The relative volumes of greenhouse and outdoor flower contracted by about 3% and 1%, respectively.

Already elevated relative to pre-COVID observations, the U.S. Spot Index climbed each week this month. This even as wholesale flower prices on the West Coast stabilized somewhat. New tax figures from California’s legal cannabis market indicate that overall demand is up significantly compared to 2019, with adult-use purchasing increasing from Q1 to Q2. 

Meanwhile, wholesale prices have continued to trend upward in Colorado, Illinois, and Michigan. The latter two markets are quickly expanding their influence on the U.S. composite price, as their growing sales account for greater proportions of the national total each month. For example, whereas Nevada was earlier this year one of the top markets by revenue, with sales reaching over $60 million monthly, both Michigan and Illinois saw total cannabis revenues top $100 million last month, in line with sales in Oregon. Those figures should also continue to grow as production and the retail footprints of their adult-use sectors develop and expand further.

Looking ahead, higher wholesale flower prices in Michigan and Illinois, where production has largely remained indoors to this point, could help buoy the U.S. Spot in the coming months as the autumn harvest comes in, at least more so than in prior years. Early reports have indicated favorable growing conditions on the West Coast, but severe wildfires in California could complicate harvests, with the potential that product could be made unmarketable by smoke and other contaminants from the blazes.