June 11, 2021

U.S. Cannabis Spot Index — June 18, 2021

U.S. Cannabis Spot Index — Published June 18, 2021

U.S. Cannabis Spot Index increased 1.4% to $1,618 per pound.

 

The simple average (non-volume weighted) price increased $41 to $1,859 per pound, with 68% of transactions (one standard deviation) in the $1,045 to $2,673 per pound range. The average reported deal size increased to 2.5 pounds. In grams, the Spot price was $3.57 and the simple average price was $4.10.

 

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

    

 

The relative volume of warehouse flower expanded by 2% this week. The relative volume of greenhouse product contracted by the same proportion, while that for outdoor 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 unchanged at $1,630 per pound.

 

The average reported forward deal size was 59.6 pounds. The proportions of forward deals for outdoor, greenhouse, and  indoor-grown flower were 55%, 35%, and 10% of forward arrangements, respectively. The average forward deal sizes for monthly delivery for outdoor, greenhouse, and indoor-grown flower were 72 pounds, 48 pounds, and 33 pounds, respectively.

 

At $1,630 per pound, the July Implied Forward represents a premium of 0.7% relative to the current U.S. Spot Price of $1,618 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:

California

Tax Department Data Shows Volume of Wholesale Flower Entering the Licensed System Expanded by 69% from 2019-2020

Colorado

Consumer and Patient Demand Remained Strong in April, with Combined Sales Off Only Slightly from March

Massachusetts

Adult-Use Sales Climb to a New Record of $110 Million in May, but Growth in Average Daily Sales Slowed

Oklahoma

Medical Cannabis Dispensaries Tally over $85 Million in Sales in April; Sales and Patient Counts Have Stabilized Recently

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

18 June 2021.  Copyright © 2021 New Leaf Data Services, LLC.  All rights reserved