The U.S. Cannabis Spot Index increased 2.8% to $998 per pound.
In grams, the Spot price was $2.20.
The national price of wholesale spot cannabis rose again this week, with the U.S. Spot Index jumping $27 on gains in legacy states, the Northeast, and Midwest.
California spot has been on a bit of a tear, gaining 22.9% since early January 2023. Colorado wholesale spot rose $9 this week and has climbed 6.8% since the all-time low reached in January 2023. Washington State gained $20 this week, building off a $9 range extending from early February. Oregon wholesale spot increased $4 this week, but still has more downside potential than the other legacy states in that no base from which gains can be made is yet in place.
Legacy state markets gave the first signal last Fall that cannabis prices in the oldest legal states were likely to recover. It was a strangely-timed development, occurring during “Croptober,” when the industry expects prices to fall due to overwhelming outdoor supply coming to market. Oregon outdoor flower price did bottom out in November, but has since made gains to rally past Colorado and Washington State. California outdoor product price is rallying as well, which will bode well for price gains in the greenhouse and indoor markets. Washington State outdoor price gained during the holiday season and over the new year, but has been falling since mid-January. The gains in the market can also be attributed to fewer licenses and contracting production in legacy states, but also increasing demand for outdoor product for extraction and use in edibles and other products.
April 2023 Implied Forward unchanged at $1,000 per pound.
At $1,000 per pound, the April 2023 Implied Forward represents a premium of 0.2% relative to the current U.S. Spot Price of $998 per pound.
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