Current Data

U.S. Cannabis Spot Index up 1.1% to $1,404 per pound.

The simple average (non-volume weighted) price increased $45 to $1,617 per pound, with 68% of transactions (one standard deviation) in the $866 to $2,369 per pound range. The average reported deal size increased to 2.1 pounds. In grams, the Spot price was $3.10 and the simple average price was $3.57.

Transaction stats on the national level, shown in the chart below, were largely stable from last week. 

As we approach the end of the first quarter of 2020, relatively more indoor flower is being traded compared to the start of this year. In the opening week of 2020, each grow type constituted roughly a third of the total observed volume traded in the U.S. Now, however, indoor flower’s share of the total documented weight moved is almost half. Despite higher-priced warehouse product making up a significantly larger portion of the total, this week’s U.S. Spot is up only $7 from the first week of this year. 

The U.S. Spot Index rose by 1.1% this week to settle at $1,404 per pound. As the COVID-19 – or coronavirus – pandemic dominates national and international headlines, it is not yet clear how the situation will impact the U.S. cannabis industry. However, numerous states with large legal cannabis markets are being affected. At this point, information from the Centers for Disease Control (CDC) shows that Washington State and California are among the top three states in terms of reported cases of the virus (along with New York). As of March 12, Colorado officials had counted 49 presumptive cases of COVID-19 in the state. 

Recommended measures such as “social distancing” could lead to lower sales for a period, depending on how long the situation persists. On the other hand, consumers and patients in hard-hit areas may look to stock up on product ahead of isolating themselves, possibly providing a short-term increase in demand. On the production side, greater spread of the virus in areas with significant cultivation capacity could interrupt or constrict supply if employees are compelled to stay home or work only intermittently. 

In more quotidian developments, Boston saw its first licensed adult-use retailer open recently, which should result in a boost to statewide revenue figures as there are currently only about three dozen permitted recreational storefronts in Massachusetts. Meanwhile, regulatory changes in Michigan could tighten supply and result in less flexibility in transferring product from the medical to the adult-use sector in some cases.