cannabis benchmarks weekly report -- published 23 june 2017
U.S. Cannabis Spot Index up 2.3% to $1,578 per pound.
The simple average (non-volume weighted) price decreased $1 to $1,811 per pound, with 68% of transactions (one standard deviation) in the $1,143 to $2,479 per pound range. The average deal size decreased 3.3% to 9.9 pounds from 10.3 pounds last week. In grams, the Spot price was $3.48, and the simple average price was $3.99.
This week saw indoor and greenhouse flower wield slightly greater influence on the overall volume-weighted average compared to last week. Both of the aforementioned grow types increased their share of the total observed weight moved by 3%, resulting in a corresponding 6% week-over-week decrease in the relative volume of outdoor-grown product. Only deals for greenhouse flower increased in relative frequency, by 4% compared to last week.
Indoor flower spanned from $999 to $6,250 per pound; the median price was $2,050/lb.
Greenhouse flower spanned from $800 to $3,350 per pound; the median price was $1,305/lb.
Outdoor flower spanned from $700 to $1,800 per pound; the median price was $1,200/lb.
The U.S. Spot Index continued the pattern of relatively small up-and-down weekly movements that has been observed over roughly the last month, this week rising by just over 2% to just surpass the $1,575 per pound threshold. Only warehouse flower saw a week-over-week decline in its volume-weighted average rates, which was offset by pricing for both sun-fueled grow types ticking upward.
The table below illustrates the U.S. Spot Index, along with the volume weighted averages for all transactions accompanied by a medical or recreational / adult-use designation.
Pricing for product in both medical and adult-use markets recovered from last week’s downturn, rising by roughly 3% and 2%, respectively. Though Arizona and Michigan’s medical markets both saw week-over-week declines in their composite rates, California’s Spot was up compared to last week, as were those of Illinois, Nevada, and Maine. In regard to markets with parallel medical and adult-use systems, in Colorado pricing for the former exceeded the latter by less than 1%, while in adult-use product in Oregon commanded a 3.2% premium over flower grown and sold in the state’s medical cannabis system.
July Forward unchanged at $1,525 per pound.
Forward arrangements represented just over 5% of overall market activity this week. The average forward deal decreased to 33.0 pounds, from 33.8 pounds last week. The proportion of forward deals for outdoor, greenhouse, and indoor-grown flower represented 45%, 40%, and 15% of forward arrangements, respectively. The average forward deal size for monthly delivery for outdoor, greenhouse, and indoor-grown flower was 40 pounds, 29 pounds, and 23 pounds, respectively.
At $1,525, the July Forward represents a discount of 3.4% relative to the current U.S. Spot Index of $1,578. The premium or discount for each forward price, relative to the U.S. Spot Index, is illustrated in the table below.
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As we near the halfway point of 2017, our analysis of monthly nationwide wholesale rates for cannabis flower in state-legal markets shows remarkable steadiness, with the largest month-over-month movement in the U.S. Spot being the 3% decline from May to June (MTD). (Editor’s note: The average rates for June shown in the chart above include only those from the weeks ending June 2nd through June 16th, and not this week’s data.)
While the average wholesale price has been highest in April in 2017, the highest monthly rate observed in 2016 was $2,059, in May, with the weekly peak price for 2016 occurring late that month as well. So far this year, the highest weekly U.S. Spot price was observed in the week ending March 31st, at $1,682 per pound, roughly two months ahead of when 2016’s peak rate was documented. With the summer's first round of light-deprivation harvests likely to take place in the coming weeks, it is conceivable that the 2017 peak of the U.S. Spot Index is already behind us, as sun-grown supplies should only increase over the course of remainder of the year.
New markets approved by voters in the November 2016 election remain under construction by regulators and have not affected existing wholesale pricing materially thus far.
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23 June 2017. Copyright © 2017 New Leaf Data Services, LLC. All rights reserved.