U.S. Cannabis Spot Index increased 2.2% to $1,496 per pound.
The simple average (non-volume weighted) price decreased $2 to $1,722 per pound, with 68% of transactions (one standard deviation) in the $894 to $2,549 per pound range. The average reported deal size decreased to 2.1 pounds. In grams, the Spot price was $3.30 and the simple average price was $3.80.
The relative frequency of transactions for indoor flower was up about 2% this week. The relative frequency of trades for greenhouse flower fell roughly 1% and outdoor flower was largely unchanged.
The relative volume of indoor product increased by 3% this week. The relative volume of greenhouse flower was down by 1% and outdoor product’s relative volume fell 2%.
U.S. Spot price moved higher this week, gaining $23 per pound to trade at $1,496 per pound. The overall trend remains down with overproduction in legacy states still weighing on the national index. Washington, Colorado, California, and Oregon prices continue to converge below $1,200 per pound. Meanwhile, other states such as Nevada have seen price increases over the past six weeks and Michigan prices remain stable in the mid $2,300s.
With the commencement of harvest season in the large western states and the rush to sell off existing inventory, spot prices are likely to remain under pressure in the coming weeks. In particular, outdoor cannabis may see a sell-off of unprecedented proportions due to large inventories, expansive growing efforts and, to some extent, waning demand. On the other hand, Massachusetts, a relative newcomer to the adult-use realm, is likely to see price continue to increase as New York, New Jersey, and Connecticut have each pushed back expected start dates for adult-use retail sales.
October 2021 Implied Forward closes down $50 to $1,450 per pound.
The average reported forward deal size was 67 pounds. The proportions of forward deals for outdoor, greenhouse, and indoor-grown flower were 44%, 39%, and 17% of forward arrangements, respectively.
The average forward deal sizes for monthly delivery for outdoor, greenhouse, and indoor-grown flower were 91 pounds, 56 pounds, and 29 pounds, respectively.
Oregon
Oregon August Monthly Sales down 4%
Michigan
Retail Prices Rise Even as Inventory Builds and Production Expands
Massachusetts
Monthly Sales Slip Slightly in August
New Jersey
Report: Adult-Use Business Licensing Will Not Begin On Time