CANNABIS BENCHMARKS WEEKLY REPORT -- PUBLISHED APRIL 13, 2018
U.S. Cannabis Spot Index down 1.4% to $1,367 per pound.
The simple average (non-volume weighted) price decreased by $62 to $1,437 per pound, with 68% of transactions (one standard deviation) in the $673 to $2,201 per pound range. The average deal size decreased 7.8% to 6.3 pounds from 6.8 pounds last week. In grams, the Spot price was $3.01, and the simple average price was $3.17.
The relative frequency of transactions involving outdoor flower held steady week-over-week; that for indoor product increased by 2%, causing the relative frequency of trades for greenhouse flower to decline by the same proportion. Similarly, outdoor flower’s share of the total reported weight moved was stable compared to last week. Warehouse product experienced a 1% uptick in its relative volume, resulting in a contraction of the same magnitude in that metric for greenhouse flower.
The U.S. Spot Index ticked downward for the second consecutive week, primarily due to a dip in the volume-weighted average price for indoor product. Average deal sizes contracted, continuing a trend that has been observed for much of this year. In the opening week of 2018, the average composite transaction volume was documented at 11.6 pounds. Those of warehouse, greenhouse, and outdoor flower were observed to be 8.9, 14.1, and 20.4 pounds, respectively.
After diverging over the course of the prior two weeks, the national volume-weighted average prices for flower traded in adult-use and medical cannabis markets inched closer together this week. This week’s slight uptick in the national rate for product in adult-use systems was due mainly to rises in Washington State and Nevada. Meanwhile, the national price for flower moved in medical markets was dragged down by sliding rates in California and Arizona, with the slight downward movement of the Spot Indices of Michigan and Illinois also contributing.
May Forward unchanged at $1,475 per pound.
The average forward deal was 66 pounds. The proportion of forward deals for outdoor, greenhouse, and indoor-grown flower represented 47%, 33%, and 20% of forward arrangements, respectively. The average forward deal size for monthly delivery for outdoor, greenhouse, and indoor-grown flower was 67 pounds, 79 pounds, and 43 pounds, respectively.
At $1,475 per pound, the May Forward represents a premium of 7.9% relative to the current U.S. Spot Price of $1,367 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:
13 April 2018. Copyright © 2018 New Leaf Data Services, LLC. All rights reserved