The U.S. Cannabis Spot Index decreased 1.3% to $1,047 per pound.
In grams, the Spot price was $2.31.
U.S. SPOT UPDATE & STATE MARKET OVERVIEW
The U.S. wholesale spot price added $14 this week. Legacy state gains led the way, netting +$42 per pound across California, Colorado, Oregon, and Washington State. New England states netted +$11 this week.
Midwest markets are a tale of two price regimes, one controlled by supply and demand and one (mostly) controlled by an oligarchy. Michigan spot has been trading in a $27 range this year with prices steadying after losing 63.7% in the period between November 2021 and October 2022. Illinois cannot be said to have a competitive in-state market at this point, but that hasn’t kept out-of-state entities from creating price pressure by drawing customers to Michigan, while at the same time offering a fat price arbitrage at $1,289 per pound as of this week.
The least expensive wholesale flower in the country is not to be found in a legacy state, but in Arizona. According to sources, wholesale prices in Arizona are falling due to cutthroat competition between in-state actors as they seek to squeeze out competition. Moreover, there’s ample supply in the state, allowing businesses serving medical and recreational needs to flood the market. For now, price recovery is out of the question in Arizona.
The most expensive wholesale cannabis in the country is in Connecticut, a new-to-adult use market with tight licensing and consumption controls. The wholesale spot prices in the contiguous states of Rhode Island and Massachusetts are roughly $1,500 per pound lower than the Constitution state. This wide spread will continue to pull bargain hunters who can travel between the nearby, highly connected states relatively easily, which should in turn support less expensive prices in Connecticut. Ultimately, the Connecticut price honeymoon will end despite regulators’ best efforts, because prices in competing markets with essentially the same product converge over time.
U.S. Forward Market Overview & Analysis
June 2023 Implied Forward unchanged at $1,060 per pound.
At $1,060 per pound, the June 2023 Implied Forward represents a premium of 1.3% relative to the current U.S. Spot Price of $1,047 per pound.
Monthly Sales Surge – March +11.8%
February Sales Double Down: Monthly Down 3.5%; Year-on-Year Down 6.4%
Medical Market Sales Slip Again – Down 4 of last 6 months
Year-on-Year Sales Gains Despite Price Rout