U.S. Cannabis Spot Index up 1.1% to $1,405 per pound.
The simple average (non-volume weighted) price increased $7 to $1,607 per pound, with 68% of transactions (one standard deviation) in the $890 to $2,323 per pound range. The average reported deal size declined to 2.0 pounds. In grams, the Spot price was $3.10 and the simple average price was $3.54.
The relative frequency of trades for greenhouse flower increased by over 2% this week. The relative frequency of transactions involving indoor product decreased by the same proportion, while that for outdoor flower was stable. Greenhouse product’s share of the total documented weight moved nationally expanded by almost 3% this week. The relative volume of outdoor flower contracted by the same proportion, while that for warehouse product was unchanged.
The U.S. Spot Index rose by 1.1% this week to settle at $1,405 per pound. This is the latest in the year that a new annual peak has been established by the U.S. Spot in over three years, disrupting a trend of such milestones being set earlier each year. In 2016, the annual high occurred in late May; it was observed in late March in 2017, and in the first week of the year in 2018.
Prices in California, Colorado, and Washington State continued to climb at relatively measured paces this week, while Oregon’s composite rate jumped by a more significant amount once again. As we noted above, Massachusetts’ legal cannabis market is now the most expensive in the country. However, it does not wield significant influence on the U.S. Spot Index as it is currently still much smaller than the Western markets, particularly in terms of the volume of flower traded.
Similar to last week, the national volume-weighted price for flower to be sold to general consumers jumped this week as nearly every market in which adult-use sales are taking place saw rates for such product increase, with Alaska and Nevada the only exceptions. Prices for medical flower slipped for the third straight week on decreases in that sector of the market in California, as well as in Arizona, Illinois, Michigan, Maine, New Mexico, and some other smaller medical-only markets.
October Forward assessed up $50 to $1,250 per pound.
The average reported forward deal size declined 1 pound to 46 pounds. The proportion of forward deals for outdoor, greenhouse, and indoor-grown flower was 57%, 28%, and 15% of forward arrangements, respectively. The average forward deal sizes for monthly delivery for outdoor, greenhouse, and indoor-grown flower were 43 pounds, 42 pounds, and 63 pounds, respectively.
At $1,250 per pound, the October Forward represents a discount of 11% relative to the current U.S. Spot Price of $1,405 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
Composite Price Ascends to New Annual Peak This Week and is Up About 40% Year-Over-Year
Oregon
Washington
Illinois