U.S. Cannabis Spot Index up 3.1% to $1,233 per pound.
The simple average (non-volume weighted) price increased $75 to $1,389 per pound, with 68% of transactions (one standard deviation) in the $612 to $2,166 per pound range. The average reported deal size was nominally unchanged at 2.8 pounds. In grams, the Spot price was $2.72 and the simple average price was $3.06.
The relative frequency of trades for indoor flower decreased by almost 2% week-over-week. The relative frequency of transactions involving greenhouse product increased by the same proportion, while that for deals for outdoor flower was unchanged. Warehouse flower’s share of the total documented weight moved nationally expanded by almost 5% this week. The relative volumes of greenhouse and outdoor product contracted by about 3% and 1%, respectively, compared to last week.
The U.S. Spot Index rose by 3.1% this week to settle at $1,233 per pound, a new year-to-date peak and the highest that the national composite rate has been observed to settle since June 2018. Upward-trending prices in California continue to be the primary driver of the recent positive movement in the national average. State tax collection data for Q1 shows that the excise tax on retailers rose by over 10% from Q4 2018, while only slightly more flower and less trim entered the commercial market, indicating that demand has increased while supply stagnated early this year. A rise in Colorado’s Spot also provided upward pressure on the U.S. composite rate this week, although the nation’s most mature market continues to show the greatest stability in wholesale pricing of the four major Western states in 2019.
The national volume-weighted price for flower to be sold in adult-use markets rose again this week on increases in Colorado and Nevada. Prices for medical flower were up this week on rising rates in California, Arizona, Michigan, Maine, Connecticut, and D.C.
June Forward closes up $50 at $1,125 per pound.
The average reported forward deal size was 46.5 pounds. The proportion of forward deals for outdoor, greenhouse, and indoor-grown flower was 58%, 26%, and 15% of forward arrangements, respectively. The average forward deal sizes for monthly delivery for outdoor, greenhouse, and indoor-grown flower were 40 pounds, 51 pounds, and 62 pounds, respectively.
At $1,125 per pound, the June Forward represents a discount of 8.7% relative to the current U.S. Spot Price of $1,233 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:
California
Colorado
Average Size of Wholesale Transactions Cut in Half from a Year Ago
Oregon
Washington
Arizona
Illinois