November 27, 2019

U.S. Cannabis Spot Index — November 29, 2019

U.S. Cannabis Spot Index — Published November 29, 2019

U.S. Cannabis Spot Index down 1.9% to $1,428 per pound.


The simple average (non-volume weighted) price decreased $3 to $1,658 per pound, with 68% of transactions (one standard deviation) in the $989 to $2,327 per pound range. The average reported deal size increased to 2.3 pounds. In grams, the Spot price was $3.15 and the simple average price was $3.66.


The relative frequency of trades for indoor flower decreased by 3% this week. The relative frequency of deals for outdoor product increased by the same proportion, while that for greenhouse flower was unchanged.



Outdoor product’s share of the total reported weight moved nationally expanded by 4% this week. The relative volumes of warehouse and greenhouse flower contracted by 3% and 1%, respectively.

The U.S. Spot Index declined by 1.9% this week to settle at $1,428 per pound. Remarkably, this is the first time since mid-March that the national composite price has fallen in two consecutive weeks. Spot rates fell in all three West Coast states, as well as in Nevada, with Colorado the only major market to see an uptick in its overall wholesale price this week. 


As we have called attention to in recent reports, the Thanksgiving holiday has become a time when it is now customary for retailers in states with legal adult-use cannabis to run sales and promotions, particularly on the Wednesday prior and the Friday subsequent to the holiday itself. Increased demand generated by retailers preparing for the holiday, on top of the relatively strong demand from consumers that has been recorded in many of the country’s largest legal cannabis markets this summer and autumn, may have contributed to the lack of a post-harvest erosion in wholesale prices this month.  


In previous years, the U.S. Spot Index has consistently fallen to its lowest point in November. This year, however, November’s monthly average Spot settled at $1,452 per pound, the highest observed so far in 2019 and up by 1.4% from October’s monthly mean of $1,432 per pound. This month’s average U.S. Spot price is also up by 35.1% year-over-year, compared to the rate of $1,075 per pound observed in November 2018.

The national volume-weighted price for flower to be sold to general consumers declined again this week on decreases in the adult-use sectors of the markets of California and Massachusetts, as well as downturns in Oregon, Washington State, and Nevada. 


The national price for medical flower also sank this week on declines in that section of the market in California and Colorado, in addition to decreasing prices in the medical-only systems of Arizona, Michigan, New Hampshire, New Mexico, and Rhode Island.

December Forward closes unchanged at $1,470 per pound.


The average reported forward deal size was 51 pounds. The proportion of forward deals for outdoor, greenhouse, and indoor-grown flower was 50%, 34%, and 16% of forward arrangements, respectively. The average forward deal sizes for monthly delivery for outdoor, greenhouse, and indoor-grown flower were 52 pounds, 43 pounds, and 59 pounds, respectively.


At $1,470 per pound, the December Forward represents a premium of 2.9% relative to the current U.S. Spot Price of $1,428 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:

  • Oregon

  • Officials Ban Vitamin E Acetate from Vape Products for Inhalation, But Flavored Vapes Allowed to be Sold Again Due to Judicial Ruling
  • Michigan

  • Regulators Require All Vape Products to be Tested for Vitamin E Acetate Before They Can be Sold, But No Labs Currently Qualified to Perform Such Screenings
  • Adult-Use Market to Open Sunday, But Only a Few Storefronts Licensed to Sell to Consumers
  • Massachusetts

  • Adult-Use Sales Slip for Second Straight Month in October as Full Ban on Vape Products Persists

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Cannabis Benchmarks®, a division of New Leaf Data Services, LLC

29 November 2019.  Copyright © 2019 New Leaf Data Services, LLC.  All rights reserved