March 26, 2021

U.S. Cannabis Spot Index — March 26, 2021

U.S. Cannabis Spot Index — Published March 26, 2021

U.S. Cannabis Spot Index up 1.7% to $1,528 per pound.

 

The simple average (non-volume weighted) price increased $24 to $1,781 per pound, with 68% of transactions (one standard deviation) in the $990 to $2,572 per pound range. The average reported deal size was nominally unchanged at 2.3 pounds. In grams, the Spot price was $3.37 and the simple average price was $3.93.

 

The relative frequency of trades for indoor flower increased by 1%. The relative frequency of deals for greenhouse product decreased by the same proportion, while that for outdoor flower was unchanged.  

 

 

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 stable.

The U.S. Spot Index averaged $1,508 in March, down 0.3% from February’s mean national composite price of $1,513 per pound. While we have pointed out that sales typically jump in March relative to February, the U.S. Spot also dropped from February to March 2020, by 3%, from $1,424 to $1,381 per pound. 

 

Looking back to last year at this time, our transaction data shows that the relative volumes of outdoor flower being traded in the West Coast states are smaller this year compared to the final week of March 2020. In addition to smaller proportions of lower-priced outdoor flower helping to lift wholesale prices, rates for all grow types are up compared to a year ago. This is particularly true for indoor-grown product. This week’s price of $1,990 per pound for warehouse flower is up by 14.2% from the rate of $1,742 per pound, documented in the week ending March 27, 2020. 

 

 

High prices in the younger adult-use markets of Michigan, Illinois, and Massachusetts have helped to lift rates for indoor flower from those recorded last year. However, data out of Michigan this week suggests that the notable upward price pressure from newer markets evident over the course of the past year may wane going forward. While sales growth in Michigan continued in February, expanding production is helping to bring down wholesale and retail prices in the state.

April Implied Forward closes unchanged at $1,525 per pound.

 

The average reported forward deal size was unchanged at 47 pounds. The proportions of forward deals for outdoor, greenhouse, and indoor-grown flower were 57%, 32%, and 11% of forward arrangements, respectively. The average forward deal sizes for monthly delivery for outdoor, greenhouse, and indoor-grown flower were 59 pounds, 34 pounds, and 25 pounds, respectively.

 

At $1,525 per pound, the April Implied Forward represents a discount of 0.2% relative to the current U.S. Spot Price of $1,528 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:

Oregon

Two Bills That Would Increase Cannabis Taxes Being Considered in State Legislature

Michigan

Combined Adult-Use and Medical Sales Decline to $105.8M in February, But Average Daily Revenues Still Show Growth from January

New Mexico

Sales Volume in State’s Medical Market Increased in Q4 2020, Breaking from National Trends

New York

Deal to Establish Legal Adult-Use Cannabis Market Reportedly Reached by Governor and State Lawmakers

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

26 March 2021.  Copyright © 2021 New Leaf Data Services, LLC.  All rights reserved