The U.S. Cannabis Spot Index decreased 0.6% to $992 per pound.
In grams, the Spot price was $2.19.
The U.S. Wholesale Spot Index fell just $6 this week as legacy state outdoor prices pushed higher. The net change in outdoor product in legacy states was +$49 with prices ranging from just over $500 down to just under $400 per wholesale pound. Price recovery will depend on outdoor prices remaining steady or higher; gains in these, the largest volume production markets, will underpin gains in greenhouse and indoor markets.
The New England markets netted -$130 per pound this week with Maine spot falling $54 as it remains in the middle of the pack price-wise. Massachusetts spot price skidded $41 to retain the title of least expensive cannabis in New England. Indeed, the second least expensive cannabis is in Rhode Island, which fell $8 this week but remains in a tight three-month price range. Rhode Island’s spot was taken to the woodshed just after the market opened, with price plunging by $1,000 per pound to level with Massachusetts.
Connecticut remains the priciest cannabis in New England as the state slow-rolls the licensing process to stave off the inevitable price plunge. The state remains in arbitrage territory with its spread over Massachusetts spot price at over $1,500 per pound. Vermont spot price slid $15 this week as the market looks to be getting the slow roll treatment as well, with few retail stores and taut supply.
Illinois spot price slipped $5 this week and Michigan spot fell just $2, leaving a gaping $1,400 wholesale price spread between the two states. Illinois spot price is not showing any sign of recovery and is making new all-time lows every week as arbitrage and competition team up to deflate price.
Looking at wholesale prices across the country, it appears cannabis prices are reflecting the realities of place, as well as those of supply and demand. States with little or no outdoor cultivation are priced higher, states slow-rolling adult use openings are looking to retain pricing power, and legacy states are way ahead of the game, having put a floor under their largest market – outdoor flower. There’s no economic reason to think the pattern of prices across legacy states will not be eventually repeated in the Midwest and Northeast – though at a higher price level – with the largest crop type leading prices lower before finding equilibrium.
April 2023 Implied Forward assessed up $15 to close at $1,015 per pound..
At $1,015 per pound, the April 2023 Implied Forward represents a premium of 2.3% relative to the current U.S. Spot Price of $992 per pound.
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