The U.S. Cannabis Spot Index decreased 4.1% to $1,068 per pound.
The simple average (non-volume weighted) price decreased $32 to $1,362 per pound, with 68% of transactions (one standard deviation) in the $593 to $2,131 per pound range. The average reported deal size increased to 2.6 pounds. In grams, the Spot price was $2.35 and the simple average price was $3.00.
The relative transaction frequency of indoor product was unchanged this week, that of greenhouse fell 1%, and that of outdoor product rose 1%.
The relative volume of indoor flower rose 2%, that of greenhouse flower fell 3%, and that of outdoor flower rose 1%.
U.S. Spot price fell $46 this week to $1,068 per pound on the back of net losses of $24 per pound in legacy states. Oregon fell $26 and Washington State was off $11, against gains of $5 in California and $7 in Colorado.
Adding to the pressure on Cannabis Benchmarks U.S. Spot Index are losses in Illinois of $67 per pound, a $45 loss in Michigan, a $41 decline in Arizona, a $25 decrease in Oklahoma, and a $46 slide in New Mexico.
It remains to be seen if Illinois spot retraces the entire gain from Spring 2020, when spot traded from $3,250 up to $3,900 per pound as the pandemic took hold. Given the state is dominated by a small number of very large growers, there may be an attempt to hold the line near current price, but the technical and statistical outlook suggests a retest of the $3,200 level is in the cards.
Michigan spot is trading up nearly $300 from an all-time low in early May 2022, even as the odds of ever seeing the high $2,700s again shrink against an uncapped licensing scheme and the likelihood of an ever-larger outdoor crop.
Oklahoma prices are also weighed down by the state’s massive number of cultivation licenses – a situation the state is addressing with a license moratorium beginning in August 2022.
New Mexico prices remain in a broad uptrend; price has softened within the trend. New Mexico greenhouse-grown product has been bid up as indoor-grown prices remained out of reach for many small retailers. The indoor / greenhouse spread is at $52 this week, versus $511 in April 2022 when the adult use market opened.
Alaska spot has put together five weeks of gains and is trading at nearly $2,300 per pound.
Massachusetts spot ticked up $48 per pound this week. A turnaround from current levels can only be achieved if the market can put together weeks or even months of incremental gains and avoid breaking below the all-time low set last week.
July 2022 Implied Forward assessed down $70 to $1,145 per pound.
The average reported forward deal size was 87 pounds. The proportions of forward deals for outdoor, greenhouse, and indoor-grown flower were 45%, 37%, and 18% of forward arrangements, respectively.
The average forward deal sizes for monthly delivery for outdoor, greenhouse, and indoor-grown flower were 90 pounds, 88 pounds, and 67 pounds, respectively.
At $1,145 per pound, the July 2022 Implied Forward represents a premium of 7.2% relative to the current U.S. Spot Price of $1,068 per pound. The premium or discount for each Forward price, relative to the U.S. Spot Index, is illustrated in the table below.
Colorado
Sales Slump Extends in April
Massachusetts
Sales Slip Amid Price Crash
New Jersey
First Month Sales Top $24 Million, Average Daily Sales $4.8 Million
Montana
Yellowstone Flood Imperils Cannabis Business