The U.S. Cannabis Spot Index decreased 3.1% to $1,020 per pound.
In grams, the Spot price was $2.25.
The U.S. wholesale Spot Index has fallen in four of the last five weeks after staging a successful rally from March until the first week in June. The rally fizzled as legacy states – specifically California, Oregon, and Colorado – started selling off in early to mid-June. Of the legacy states, only Washington State’s spot price is trading sideways as opposed to lower.
The Southwest “Sand States” continue to see Nevada and New Mexico trading at a premium to Oklahoma and Arizona. The widest spread in the region is between Nevada and Arizona at $725 per wholesale pound, the same as the California / Nevada spread. Indeed, California and Arizona spot cannabis prices fully converged this week.
Where’s the most expensive wholesale cannabis in the U.S.? Indications are it’s in Washington, D.C., an area in which growing cannabis is very expensive, there are only a handful of licensed producers, and where commercial adult use cannabis activity is still illegal. However, medical cannabis is legal and the district recently allowed for citizens to “self-certify” for medical cannabis, essentially a proxy for adult use.
Where’s the least expensive cannabis in the U.S.? No surprise here – it’s in Oregon where cannabis prices have been unable to gain a foothold due to massive oversupply. However, indications are the ranks of cultivators and retailers are thinning out, laying the groundwork for spot cannabis prices to begin to form a base. While the moratorium should eventually result in a reduction in the number of licenses in the state, price dynamics will do a more efficient job thinning the Oregon market and, eventually, that of every legal adult use state that becomes oversupplied.
August 2023 Implied Forward unchanged at $1,075 per pound.
At $1,075 per pound, the August 2023 Implied Forward represents a premium of 5.4% relative to the current U.S. Spot Price of $1,020 per pound.
Adult Use Sales Jump in June to $136 Million
Year-on-Year Sales Fall – Again
Wicked High Adult Use Sales
June Sales Hit Record High