August 9, 2019

U.S. Cannabis Spot Index — August 9, 2019

U.S. Cannabis Spot Index — Published August 9, 2019

U.S. Cannabis Spot Index up 1.3% to $1,337 per pound.


The simple average (non-volume weighted) price increased $18 to $1,494 per pound, with 68% of transactions (one standard deviation) in the $781 to $2,207 per pound range. The average reported deal size was nominally unchanged at 2.0 pounds. In grams, the Spot price was $2.95 and the simple average price was $3.29.


The relative frequency of trades for greenhouse flower decreased by 2% week-over-week. The relative frequency of transactions involving outdoor product increased by the same proportion, while that for deals for indoor flower was unchanged. Greenhouse flower’s share of the total documented weight moved nationally contracted by 5% this week. The relative volumes of warehouse and outdoor product expanded by 2% and 3%, respectively.

The U.S. Spot Index rose by 1.3% this week to settle at $1,337 per pound. The generally upward trend observed in wholesale cannabis prices this summer resumed after last week’s momentary downturn. Still, there are signs that downward pressure on rates could be arriving in major markets in the weeks to come. Relative volumes of outdoor flower in both California and Oregon saw significant expansions this week. Volume-weighted prices for such product continued to trend downward in California and have recently flattened in Oregon, after rates for outdoor flower in the Beaver State have been on the upswing since around the close of the first quarter.  

The national volume-weighted price for flower to be sold to general consumers increased this week on rises in that sector of the market in California and Colorado, as well as in Oregon, Washington State, and Alaska. Prices for medical flower were also on the upswing this week. Rates for product designated for registered patients saw upticks in California, Arizona, Illinois, New Mexico, Maine, Rhode Island, and Washington, D.C.  


September Forward unchanged at $1,240 per pound.


The average reported forward deal size was 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 42 pounds, 51 pounds, and 62 pounds, respectively.


At $1,240 per pound, the September Forward represents a discount of 7.2% relative to the current U.S. Spot Price of $1,337 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

  • State Spot Index Rises to New YTD Peak, Settling at Highest Price Seen Since 4/20 2018
  • Colorado

    MED’s 2018 Annual Report Shows Amount of Flower Generated by Growers Expanded by 10% from 2017, But Growth in Production Capacity Leveled Off by End of 2018

  • Oregon

  • Increases in Relative Volume of Outdoor Flower and Flattening Prices for Such Product Have Tempered Upward Trend in State’s Spot Index
  • Washington

  • State Climatologist’s Report Indicates Favorable Growing Conditions for Hoop House and Outdoor Growers So Far this Season
  • Michigan

  • Most Medical Cannabis Businesses Will See Reductions in Licensing Fees for Upcoming FY

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

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