July 2, 2020

U.S. Cannabis Spot Index — July 3, 2020

U.S. Cannabis Spot Index — Published July 3, 2020

U.S. Cannabis Spot Index up 3.5% to $1,435 per pound.


The simple average (non-volume weighted) price increased $90 to $1,642 per pound, with 68% of transactions (one standard deviation) in the $875 to $2,409 per pound range. The average reported deal size was nominally unchanged at 2.1 pounds. In grams, the Spot price was $3.16 and the simple average price was $3.62.


The relative frequency of trades for outdoor flower decreased by 3% this week. The relative frequency of transactions for greenhouse product increased by the same proportion, while that for deals for indoor flower was unchanged.  


The relative volume of greenhouse product expanded by almost 2%. The relative volumes of warehouse and outdoor flower each contracted by about 1%.

With the close of June this week, we enter the second half of 2020. The entire second quarter of this year played out under the shadow of the COVID-19 pandemic. Although the novel coronavirus has caused unprecedented social and economic disruptions, available information indicates that the legal cannabis industry in the U.S. has been notably resilient. 


As we have reported over the course of prior weeks and months, expanded consumer and patient demand has resulted in sales rocketing upward in many state markets – such as Oregon, Washington, Arizona, and Oklahoma – well in excess of previously-observed growth trends. COVID-19 has not noticeably stymied growth in new adult-use systems in Illinois and Michigan, which have continued to expand despite the operational challenges and regulatory restrictions presented by government responses to the pandemic. 


Even where growth has slowed somewhat, as in Colorado’s market, year-to-date sales through April are still up by over 12% compared to the first four months of 2019. While Nevada’s and Massachusetts’ legal cannabis markets have been hard-hit for different reasons, cannabis sales for the most part received a boost in Q2 even as COVID-19 spread throughout the U.S.



Despite unanticipated spikes in demand in numerous large legal cannabis markets, national wholesale flower prices displayed relative stability in Q2. Weekly U.S. Spot rates during the period ranged from a low of $1,322 per pound in the week ending May 22 and a high of $1,401 per pound two weeks later. For Q2 overall, the U.S. Spot Index averaged $1,359 per pound, down 3.4% from Q1. Q2 2020’s mean national composite price is up compared to the same period a year ago, however, by 16.7%.

January 2021 Forward initially assessed at $1,350 per pound.


The average reported forward deal size was 34 pounds. The proportions of forward deals for outdoor, greenhouse, and indoor-grown flower were 48%, 33%, and 19% of forward arrangements, respectively. The average forward deal sizes for monthly delivery for outdoor, greenhouse, and indoor-grown flower were 40 pounds, 28 pounds, and 31 pounds, respectively.



At $1,430 per pound, the August Forward represents a discount of 0.3% relative to the current U.S. Spot Price of $1,435 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:


Number of Active Cultivation Licenses Almost Double the Amount Counted a Year Ago


Emergency Rule Extends Expiration of Some Licenses, Likely for the Final Time



Average Daily Sales in First 30 Days Since Adult-Use Market Reopened Down Significantly from Prior to COVID-19


State Delays Issuance of Craft Cultivator, Product Manufacturer, Transport Licenses Due to Coronavirus

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

3 July 2020.  Copyright © 2020 New Leaf Data Services, LLC.  All rights reserved