U.S. Cannabis Spot Index declined 1.2% to $1,596 per pound.
The simple average (non-volume weighted) price decreased $6 to $1,818 per pound, with 68% of transactions (one standard deviation) in the $1,042 to $2,594 per pound range. The average reported deal size was nominally unchanged at 2.4 pounds. In grams, the Spot price was $3.52 and the simple average price was $4.01.
The relative frequencies of transactions for each grow type were relatively stable from last week.
The relative volume of outdoor flower contracted by over 1% this week. The relative volume of greenhouse product expanded by the same proportion, while that for warehouse flower was unchanged.
The U.S. Spot Index was generally on the rise last month, as well as being up relative to April. The national composite price averaged $1,572 per pound in May, an increase of 2.9% from the prior month. May 2021’s mean U.S. Spot price is also up 17.7% year-over-year, from $1,336 per pound in May 2020.
We noted in a recent report that retail sales in the 10 largest markets for which Cannabis Benchmarks assesses wholesale prices were up over 50% year-over-year in both March and April 2021. Early May sales data out of some states indicates that elevated demand is persisting. However, there are some signs that demand could be leveling off based on recently-released sales figures.
In Oregon, for example, retail revenues fell from April to May 2021, breaking with the trend of increasing monthly sales in that span in each year from 2017 through 2020. Meanwhile, in Illinois, although total monthly adult-use sales increased month-over-month in May, average daily retail revenues in that sector of the state’s market declined last month for the first time in over a year.
July 2021 Implied Forward up $15 at $1,630 per pound.
The average reported forward deal size was 53.4 pounds. The proportions of forward deals for outdoor, greenhouse, and indoor-grown flower were 52%, 36%, and 12% of forward arrangements, respectively. The average forward deal sizes for monthly delivery for outdoor, greenhouse, and indoor-grown flower were 67 pounds, 42 pounds, and 29 pounds, respectively.
At $1,630 per pound, the July Implied Forward represents a premium of 2.1% relative to the current U.S. Spot Price of $1,596 per pound. The premium or discount for each Forward price, relative to the U.S. Spot Index, is illustrated in the table below.
Tax Department Data Shows Volume of Wholesale Flower Entering the Licensed System Expanded by 69% from 2019-2020
Consumer and Patient Demand Remained Strong in April, with Combined Sales Off Only Slightly from March
Adult-Use Sales Climb to a New Record of $110 Million in May, but Growth in Average Daily Sales Slowed
Medical Cannabis Dispensaries Tally over $85 Million in Sales in April; Sales and Patient Counts Have Stabilized Recently