March 20, 2020

U.S. Cannabis Spot Index — March 20, 2020

U.S. Cannabis Spot Index — Published March 20, 2020

U.S. Cannabis Spot Index down 2.1% to $1,375 per pound.


The simple average (non-volume weighted) price decreased $27 to $1,591 per pound, with 68% of transactions (one standard deviation) in the $845 to $2,337 per pound range. The average reported deal size was nominally unchanged at 2.1 pounds. In grams, the Spot price was $3.03 and the simple average price was $3.51.


The relative frequency of trades for greenhouse flower decreased by 5% this week. The relative frequencies of deals for indoor and outdoor product increased by 3% and 2%, respectively. 


Warehouse flower’s share of the total reported weight moved expanded by 2% this week. The relative volume of greenhouse product contracted by the same proportion, while that for outdoor flower was unchanged.

Fallout from the COVID-19 – or coronavirus – pandemic continued to ripple across the U.S. this week. Reports from several states told of runs on legal cannabis retailers, as consumers and patients looked to stock up ahead of taking recommended social distancing and self-isolation measures. We noted in last week’s report that the COVID-19 pandemic could result in a short-term increase in demand due to such circumstances.


In other cases, such as in the San Francisco Bay Area, residents were ordered to “shelter in place,” or stay at home unless absolutely necessary, beginning Monday, March 16. However, while non-essential businesses in the Bay Area were ordered to close, licensed cannabis retailers were deemed essential and permitted to stay open. California Governor Gavin Newsom extended the shelter-in-place order to the entire state beginning Thursday, March 19. Yet, in virtually all states with legal cannabis markets, sales have continued through this week. Officials in numerous states have designated cannabis retailers – both medical and adult-use – as essential businesses for the time being.


A rundown from Leafly provides updates on many regulated cannabis markets in the U.S.

April Forward down $35 to $1,400 per pound.


The average reported forward deal size was 38 pounds. The proportion of forward deals for outdoor, greenhouse, and indoor-grown flower was 48%, 35%, and 17% of forward arrangements, respectively. The average forward deal sizes for monthly delivery for outdoor, greenhouse, and indoor-grown flower were 43 pounds, 31 pounds, and 36 pounds, respectively.



At $1,400 per pound, the April Forward represents a premium of 1.8% relative to the current U.S. Spot Price of $1,375 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:


Northern California Grower States Wholesale Sales are Slow, Attributes to Shelter-in-Place Order for San Francisco Bay Area


February Retail Sales Up 30% YoY



February Sales and Production Data Indicates Supply is Loosening, Future Months Should See Bigger Harvests if Production is Not Disrupted by Pandemic



Dispensaries Sell Almost 13,400 Pounds of Flower in February

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20 March 2020.  Copyright © 2020 New Leaf Data Services, LLC.  All rights reserved