The U.S. Cannabis Spot Index increased 1.0% to $1,087 per pound.
In grams, the Spot price was $2.40.
The U.S. wholesale spot market eked out a $4 per pound gain this week as regional markets netted out in the red. Legacy states netted -$32, New England states netted -$56, the Midwest slipped net $7, while the Southwest Sand States slid $11. Alaska, a region of its own, jumped $36 per wholesale pound.
Price recovery in legacy states is largely driven by steady to higher prices in the highest-volume product segment – the outdoor market. As noted previously, price contagion upward from the outdoor market pulled greenhouse and indoor prices down over the past two years. However, wholesale spot prices for outdoor-grown cannabis have been in a slow but uneven recovery since last fall.
California outdoor flower prices reached a new all-time low in December 2022, but have since staged an impressive recovery to the tune of a 32% gain in price per wholesale pound. Oregon outdoor product prices have been the most volatile, but have managed to stay slightly above the all-time low set in 2018. Colorado outdoor product prices have been volatile, but have climbed 33.7% since March 2023. Washington State outdoor flower price gains have mirrored those in California, increasing over 30% since March 2023.
Cannabis prices look to remain steady to higher going into the summer season. The outdoor market is improving steadily as more innovation in the industry creates a steady demand for extracted products. Markets are likely still over-supplied, but business turnover and prices competitive with the illicit market should evolve into a base pricing structure, which doesn’t necessarily mean significantly higher prices across all grow types. The middle market – greenhouse flower – is benefiting the most from outdoor price stability, which may indicate something about the market as a whole in terms of consumer and wholesaler demand for product priced above outdoor, but well below indoor.
December 2023 Implied Forward initially assessed at $1,025 per pound.
At $1,100 per pound, the July 2023 Implied Forward represents a premium of 1.2% relative to the current U.S. Spot Price of $1,087 per pound.
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Legacy State Outdoor Flower Price Recovery