February 28, 2020

U.S. Cannabis Spot Index — February 28, 2020

U.S. Cannabis Spot Index — Published February 28, 2020

U.S. Cannabis Spot Index down 4.4% to $1,358 per pound.


The simple average (non-volume weighted) price decreased $107 to $1,578 per pound, with 68% of transactions (one standard deviation) in the $861 to $2,296 per pound range. The average reported deal size decreased to 2.1 pounds. In grams, the Spot price was $2.99 and the simple average price was $3.48.


The relative frequency of trades for greenhouse flower decreased by 5% this week. The relative frequencies of deals for indoor and outdoor product increased by 3% and 2%, respectively. 

Greenhouse product’s share of the total reported weight moved nationally contracted by 4% this week. The relative volume of outdoor flower expanded by the same proportion, while that for warehouse flower was unchanged.

U.S. Spot Index declined by 4.4% this week to settle at $1,358 per pound. Overall on a national level, and in the West Coast states individually, outdoor flower has been observed to have been coming to market in increased amounts in recent weeks. Average deal sizes for such product, as well as its proportions of the total amount of flower documented to have been traded, have been on the rise. Although prices for outdoor product are generally strong relative to a year ago, the greater prevalence of the lowest-priced grow type has contributed to the recent downward trend in the national composite price. 


Meanwhile, the recent development of slightly falling prices in the states with the newest adult-use markets persisted this week. However, assessments of both adult-use and medical product prices were observed to stabilize overall this week in Illinois, Michigan, and Massachusetts. However, in the latter state, sales continue to grow while production has stagnated in the past four months. Additionally, production data out of Michigan reviewed in previous reports indicates that a lull in harvests could occur at some point in the coming weeks, leading to tighter supply.

March Forward assessed down $40 to close at $1,435 per pound.


The average reported forward deal size was 40 pounds. The proportion of forward deals for outdoor, greenhouse, and indoor-grown flower was 50%, 34%, and 16% of forward arrangements, respectively. The average forward deal sizes for monthly delivery for outdoor, greenhouse, and indoor-grown flower were 44 pounds, 33 pounds, and 39 pounds, respectively.


At $1,435 per pound, the March Forward represents a premium of 5.7% relative to the current U.S. Spot Price of $1,358 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:


State Officials Release Proposed Regulations to Establish Appellations of Origin for Cannabis Products


January 2020 Sales Volumes Slip Slightly for Second Straight Month; Still Up 30% YoY



Monthly Adult-Use Revenues Top $50 Million for the First Time in January as State Spot Ascended Above 2019 Peaks   



Medical Cannabis Sales Down Almost 15% in January, While Average Flower Price for Patients Rose 5%

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28 February 2020.  Copyright © 2020 New Leaf Data Services, LLC.  All rights reserved