The U.S. Cannabis Spot Index decreased 1.1% to $1,033 per pound.
In grams, the Spot price was $2.28.
The U.S. Spot Index slipped $11 per pound this week and since early December 2022 has remained within an $85 range. Western markets especially have been bottoming out as indicated by tight ranges and rising prices.
Legacy states netted +$43 this week. Colorado spot wholesale price was unchanged from last week. It is trading at a level not seen since December 2022 and within the $53 range established between that time and today. Washington State wholesale spot price is likewise well-situated, trading near the top of a $69 range that has been in place since January 2023. California spot fell $20 this week, but remains within the upswing that began when an all-time low was established in early January 2023. Oregon wholesale spot price jumped $35 this week and has added $200 per wholesale pound on a nearly straight run-up over the past three weeks.
New England states were net -$58 per pound this week. Price pressure developed in the Vermont wholesale market, creating a $40 per wholesale pound price drop and a test of the state’s all-time low likely over the next week. Connecticut wholesale cannabis price was unchanged this week, maintaining the 12.4% drop that has occurred since early January 2023. Maine spot wholesale price jumped $37 this week and Massachusetts spot slid $47, keeping the Maine premium over the Bay State at a steady $209 per wholesale pound. Rhode Island price fell $19, but remains near the top of an $87 range dating back to the last week in January 2023.
Michigan price was steady, up $1 per wholesale pound and firmly within the $32 price range dating back to January 2023.
The good news is that state cannabis prices across the country are mostly trading in at least three month ranges – some of which are quite narrow. Range trading drains volatility from markets that have undergone large sell-offs. While there might still be more on the downside, especially for markets that are newly open for adult use sales, the range-bound markets also suggest prices in those states are nearing illicit market levels. It’s up to the consumer to make a choice now, based not so much on price but on personal preference. It’s likely that retail stores will see more business this summer because they’re competitive with the illicit market in many states and offer a convenient place to buy cannabis that is safety tested, professionally packaged, and legal.
November 2023 Implied Forward initially assessed at $1,010 per pound.
At $1,060 per pound, the June 2023 Implied Forward represents a premium of 2.6% relative to the current U.S. Spot Price of $1,033 per pound.
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