August 30, 2019

U.S. Cannabis Spot Index — August 30, 2019

U.S. Cannabis Spot Index — Published August 30, 2019

U.S. Cannabis Spot Index up 4.0% to $1,404 per pound.


The simple average (non-volume weighted) price increased $48 to $1,605 per pound, with 68% of transactions (one standard deviation) in the $858 to $2,353 per pound range. The average reported deal size was 2.2 pounds. In grams, the Spot price was $3.10 and the simple average price was $3.54.


The relative frequency of trades for indoor flower increased by over 1% this week. The relative frequency of transactions involving greenhouse product decreased by the same proportion, while that for outdoor flower was stable. Outdoor product’s share of the total documented weight moved nationally contracted by 3% this week. The relative volumes of warehouse and greenhouse flower expanded by 1% and 2%, respectively.



The U.S. Spot Index rose by 4% this week to settle at $1,404 per pound. This week’s national composite price represents a new annual peak and is the highest observed since the opening week of 2018.  


As shown in the chart above, the generally upward trend in wholesale prices documented in the country’s four major legal cannabis markets is persisting as summer draws toward a close. New tax data out of California, discussed below, shows that the amount of demand being captured by the Golden State’s licensed system increased significantly in Q2. 


Downward trends in wholesale rates in the secondary markets of Nevada and Michigan have not been enough to stem the positive momentum of the U.S. Spot. Nevada’s market is close to the size of Oregon’s in terms of retail revenues generated in recent months. However, we estimate that significantly more flower is traded wholesale in Oregon compared to Nevada.

The national volume-weighted price for flower to be sold to general consumers rose this week on increases in all four major markets, as well as Alaska, which outweighed a decline in Nevada. 


Prices for medical flower jumped this week to their highest point in the quarter. Rates for product designated for registered patients were on the rise in California, Massachusetts, Illinois, and New Mexico, as well as some smaller markets.


September Forward closes up $35 to $1,325 per pound.


The average reported forward deal size was 46 pounds. The proportion of forward deals for outdoor, greenhouse, and indoor-grown flower was 59%, 25%, and 16% of forward arrangements, respectively. The average forward deal sizes for monthly delivery for outdoor, greenhouse, and indoor-grown flower were 43 pounds, 40 pounds, and 63 pounds, respectively.


At $1,325 per pound, the September Forward represents a discount of 5.6% relative to the current U.S. Spot Price of $1,404 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

  • Q2 Cannabis Tax Data Shows Retail Sales Up Roughly 18% from Q1, Volume of Flower and Trim Transferred Wholesale Both Up by About 38% Each
  • Colorado

    Denver Health Official Provides More Details on Contaminant Assessment of Products on Retail Shelves

  • Oregon

  • QTD Spot Index Up About 50% Compared to Q2’s Average Composite Price
  • Michigan

  • Sales in Medical Cannabis Market Expanding Steadily, But Suspension of Testing Lab Raises Questions About Possible Supply Bottleneck
  • New Mexico

  • New Plant Count Limit Went Into Effect This Week, Producers Now Limited to 1,750 Mature Plants, Down from 2,500

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

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