The U.S. Cannabis Spot Index decreased 3.2% to $952 per pound.
In grams, the Spot price was $2.10.
U.S. wholesale cannabis prices continued to sell-off this week. The U.S. Spot Index fell $31 per pound on the back of a New England net loss of $315, most of which comes from Massachusetts spot price tanking by $248. Maine shed $69 per wholesale pound and Vermont fell $14. Connecticut eked out a $16 per pound gain and Rhode Island managed a $1 uptick.
The average price across New England states is $1,958 per wholesale pound, which reflects the price damage in Massachusetts (-48.4% since mid-December 2022), Rhode Island (-41% since mid-November 2022), and Maine (-28.7% since mid-December 2022).
Vermont and Connecticut are still standing up their cannabis markets. Vermont appears to have 37 retail stores open with 22 retail applicants in the works. Connecticut has licensed nine recreational outlets to this point and has limited consumer purchases to seven grams of flower or its equivalent for an undetermined time. Connecticut and Vermont have thus far been resistant to a price crash, but that should last only as long as the pace of license issuance and the time needed for cultivators to bring expanded crops to market is protecting price.
Illinois spot price fell $34 this week and is down nearly 30% since early December 2022. Michigan spot fell just $6 this week, but remains below the pivotal $1,000 handle. The Illinois / Michigan spread is nearly $1,600 per pound, testimony to the tight grip of Illinois’ bigger cannabis players, but also an invitation to arbitrage.
The most expensive cannabis in the U.S. can be found in Connecticut, followed by Vermont, Alaska, and Illinois. Connecticut and Vermont prices remain high due each state’s developing markets and will likely remain elevated until each market is fully operational. Alaska prices remain stubbornly high due to high energy expenses and the state’s location. Illinois has undergone a bit of a shellacking, but remains in the top four most expensive cannabis markets in the U.S. The largest price spread among the four markets is between Connecticut and Illinois at $344. Since late December 2022, Illinois prices have gone from the most expensive market in the U.S. to the least expensive among the top four and appear to be headed lower.
March 2023 Implied Forward unchanged at $1,025 per pound.
At $1,025 per pound, the March 2023 Implied Forward represents a premium of 7.7% relative to the current U.S. Spot Price of $952 per pound.
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