The U.S. Cannabis Spot Index decreased 1.1% to $958 per pound.
In grams, the Spot price was $2.11.
U.S. wholesale Spot cannabis prices inched up $25 this week with gains in legacy states leading the index higher. California outdoor-grown cannabis is now at its highest level since October 2022 and has distinguished itself clearly as the highest priced among legacy states. It’s not yet clear if lapsed licenses and fallowed fields reported by sources will be enough to take out excess supply in the market and allow prices to continue to steady. If week-to-week gains and losses remain small and above recent lows made in December 2022, a technical base will start to build for future price gains.
While it cannot be said the market has turned and prices for outdoor flower will increase, low price volatility in the largest-volume segment of the wholesale market should help steady greenhouse and indoor flower prices. However, the process of price gains after a sell-off of this magnitude promises to be very slow.
Massachusetts wholesale spot price fell $63, settling below the $1,000 mark for the first time ever. The spot losses have been staggering as the market adjusts through a period of indebtedness that finds companies fire-saling inventory. Meanwhile, contiguous states are standing up their legal adult use markets, which promise to drain some demand that Massachusetts retailers captured previously. Andrew Thut, CIO of 4Front Ventures, still sees positive developments in Massachusetts, but acknowledged, “it’s a winner take all market.” See the full interview in our Premium report.
September 2023 Implied Forward initially assessed at $1,025 per pound.
At $1,000 per pound, the April 2023 Implied Forward represents a premium of 4.4% relative to the current U.S. Spot Price of $958 per pound.
4Front Ventures is Executing: Interview with CIO Andrew Thut
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December 2022 Sales Slide
February Medical and Adult Use sales Tick Up