The U.S. Cannabis Spot Index increased 2.9% to $963 per pound.
In grams, the Spot price was $2.12.
The U.S. Spot wholesale flower price bounced off the historic low set last week to rise to $963 per pound this week. In the prior two weeks, the national spot index broke through the $950 per pound floor it had approached on several occasions from late October 2022 to early March 2023. This week’s price, however, puts the U.S. spot back in the $950 – $1,000 range it occupied during Q4 2022 and Q1 2023, before this spring’s rally up to almost $1,100 per pound.
This week’s upward movement in the national wholesale price was driven primarily by gains in the price for indoor flower across a number of major markets. In particular, wholesale indoor flower prices from large markets that also allow outdoor cultivation – California, Colorado, Washington, Oregon, and Michigan – all saw increases in their weighted average price for indoor flower this week.
The uptick in indoor flower prices in the markets noted above may be due to tightening supply from summer crops, which, based on available data, have been smaller year-on-year in the West Coast markets and Colorado. In other words, a reduction in the usual seasonal supply from sun-grown summer harvests should boost demand for indoor-grown product. While Michigan has seen an overall increase in plants being grown compared to 2022, supply in the state is tightening overall as consumption is expanding at a greater rate than production. We examine the latest data out of Michigan’s market in detail in our Premium Report.
This week’s rise in the U.S. spot price is likely to be momentary given the impending full-term outdoor harvest that will be brought in next month. As Cannabis Benchmarks price assessments are volume-weighted, the large amounts of lower-priced outdoor flower that come to market during Q4 of any given year have the effect of pulling down the national Spot Index, even if prices for indoor and greenhouse flower are on the rise. Additionally, aggregate wholesale flower prices in most large state markets (those with over $75 million in monthly sales) remain in downtrends, with the exception of Michigan and Washington.
October 2023 Implied Forward assessed down $25 to $910 per pound.
At $910 per pound, the October 2023 Implied Forward represents a discount of 5.5% relative to the current U.S. Spot Price of $963 per pound.
San Diego Social Equity Proposal Would Nearly Double Number of Retail Licenses
Aspergillus Testing Suspended Until at Least March ‘24, Products Released
Wholesale Prices Ticking Up as Supply Tightens, but Outdoor Harvest Looms
Almost 50 New Stores to be Licensed Under Social Equity Program