CANNABIS BENCHMARKS WEEKLY REPORT -- JUNE 22, 2018
U.S. Cannabis Spot Index down 2.3% to $1,181 per pound.
The simple average (non-volume weighted) price decreased by $20 to $1,320 per pound, with 68% of transactions (one standard deviation) in the $571 to $2,069 per pound range. The average deal size increased 4.8% to 5.3 pounds from 5.1 pounds. In grams, the Spot price was $2.60, and the simple average price was $2.91.
The relative frequency of transactions for indoor flower decreased slightly week-over-week, by 1%, as did the relative frequency of trades for outdoor product. Consequently, deals for greenhouse flower saw a 2% increase in that metric. Warehouse product’s share of the total observed weight moved nationwide contracted by 3% compared to last week. Meanwhile, the relative volumes of greenhouse and outdoor-grown flower both expanded this week, by 2% and 1%, respectively.
The U.S. Spot Index again fell to a new historic low this week. The overall decline was driven by decreases in the volume-weighted average prices for indoor and greenhouse flower. The latter saw the largest proportional week-over-week slide, but the former accounted for over half of the observed volume traded nationally, and thus exercised a greater influence on the U.S. composite price. Average deal sizes were up across the board this week, disrupting momentarily the trend of shrinking average transaction volumes that has marked much of this year.
In the opening week of this year, the Spot Indices of California, Colorado, and Washington State settled $48, $392, and $299 below the national average, which was $1,503 per pound at the time.
Oregon’s Spot Index closed $267 above the U.S. composite price in that week.
July Forward unchanged at $1,350 per pound.
The average forward deal declined 1 pound to 66 pounds. The proportion of forward deals for outdoor, greenhouse, and indoor-grown flower represented 44%, 39%, and 17% of forward arrangements, respectively. The average forward deal size for monthly delivery for outdoor, greenhouse, and indoor-grown flower was 76 pounds, 63 pounds, and 47 pounds, respectively.
At $1,350 per pound, the July Forward represents a premium of 14.3% relative to the current U.S. Spot Price of $1,181 per pound. The premium or discount for each Forward price, relative to the U.S. Spot Index, is illustrated in the table below.
Sample headlines from this week's Premium Report:
22 June 2018. Copyright © 2018 New Leaf Data Services, LLC. All rights reserved