The U.S. Cannabis Spot Index decreased 4.5% to $954 per pound.
The simple average (non-volume weighted) price decreased $47 to $1,301 per pound, with 68% of transactions (one standard deviation) in the $527 to $2,075 per pound range. The average reported deal size was nominally unchanged at 2.4 pounds. In grams, the Spot price was $2.10 and the simple average price was $2.87.
The relative transaction frequency of indoor product fell 1%, while that of deals for greenhouse and outdoor flower each rose 1%.
The relative volume of indoor product fell 2%, while that of greenhouse product rose 3%. Outdoor flower’s relative volume was unchanged this week.
The Cannabis Benchmarks U.S. Spot Index fell $45 this week as legacy states lost net $96 on the week. Both Colorado’s and California’s spot prices for wholesale flower fell to new all-time lows this week with the outdoor harvest yet to come to market in full force.
New England states were net gainers on the week with Massachusetts spot jumping $71. Prices in the state may come under pressure when the outdoor crop comes to market over the next few weeks, though the size of the harvest is unknown and therefore price effects are a tough call. Maine spot fell $36 this week. The spread between Maine and Massachusetts collapsed from $133 last week to just $2 this week, illustrating the tendency for prices of similar or like commodity prices to converge.
Vermont price gained just $3 per pound wholesale, but is still trading at a $100 premium to its two New England counterparts with open adult use markets. Vermont still has very limited distribution and may see prices firm as new adult use retailers stock inventory ahead of opening for business. That said, any premium between contiguous states where all other factors are similar or equal should see an almost immediate price convergence.
November 2022 Implied Forward unchanged to close at $950 per pound.
The average reported forward deal size was 76 pounds. The proportions of forward deals for outdoor, greenhouse, and indoor-grown flower were 50%, 36%, and 14% of forward arrangements, respectively.
The average forward deal sizes for monthly delivery for outdoor, greenhouse, and indoor-grown flower were 82 pounds, 72 pounds, and 67 pounds, respectively.
At $950 per pound, the November 2022 Implied Forward represents a discount of 0.4% relative to the current U.S. Spot Price of $954 per pound. The premium or discount for each Forward price, relative to the U.S. Spot Index, is illustrated in the table below.