January 21, 2021

U.S. Cannabis Spot Index — January 22, 2021

U.S. Cannabis Spot Index — Published January 22, 2021

U.S. Cannabis Spot Index up 0.6% to $1,486 per pound.

 

The simple average (non-volume weighted) price decreased $29 to $1,749 per pound, with 68% of transactions (one standard deviation) in the $1,013 to $2,484 per pound range. The average reported deal size decreased to 2.4 pounds. In grams, the Spot price was $3.28 and the simple average price was $3.86.

 

The relative frequency of trades for greenhouse flower decreased by 1%. The relative frequency of deals for outdoor product increased by the same proportion, while that for indoor flower was unchanged.

  

 

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

The city of Detroit began accepting applications for adult-use retailers this week, on Tuesday, January 19. Applications will initially only be accepted from “legacy residents” who meet certain criteria under a social equity program, according to the Detroit News. To this point, Detroit has not permitted any adult-use cannabis businesses to open in the city. We noted previously that licenses could be issued as soon as June 2021. 

 

The Detroit News report notes, “only a handful of the city’s 46 medical marijuana dispensaries … are owned by [Detroit] residents.” This suggests that, for the most part, sales to adult-use consumers will not begin through existing stores as soon as licenses are issued and most new licensees will have to get up and running from scratch.

February Implied Forward declined $25 to $1,500 per pound.

 

The average reported forward deal size was 39.6 pounds. The proportions of forward deals for outdoor, greenhouse, and indoor-grown flower were 52%, 35%, and 13% of forward arrangements, respectively. The average forward deal sizes for monthly delivery for outdoor, greenhouse, and indoor-grown flower were 55 pounds, 21 pounds, and 26 pounds, respectively.

 

At $1,500 per pound, the February Implied Forward represents a premium of 1.0% relative to the current U.S. Spot Price of $1,486 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:

Michigan

Combined Adult-Use and Medical Cannabis Sales Reach Almost $985 Million in 2020

Arizona

New Adult-Use Market May Open in Coming Days, About Two Months Ahead of Expectations

New Mexico

Medical Cannabis Sales Expanded Significantly in Q3 2020, Even as Growth in Patient Count Slowed

Massachusetts

Adult-Use Delivery Businesses Expected to Come Online this Year, but May Be Delayed by Litigation

Are you a licensed market participant in the U.S. or Canada? 

Do you support wholesale market transparency?

Become a member of our Price Contributor Network and receive discounted pricing and exclusive analysis!

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

22 January 2021.  Copyright © 2021 New Leaf Data Services, LLC.  All rights reserved