Cannabis Benchmarks Weekly Report -- Published on 7 april 2017
U.S. Cannabis Spot Index down 0.2% to $1,679 per pound.
The simple average (non-volume weighted) price decreased $54 to $1,814 per pound, with 68% of transactions (one standard deviation) in the $1,104 to $2,524 per pound range. The average deal size increased 15% to 6.9 pounds this week, from 6.0 pounds last week. In grams, the Spot price was $3.70, and the simple average price was $4.00.
Indoor-grown flower continued to constitute the majority of the observed volume traded this week, but its share of the total documented weight moved decreased by 6% compared to last week. The corresponding gain accrued primarily due to outdoor product, the relative volume of which swelled 5% week-over-week. Transactions stats for greenhouse flower saw very slight increases in the relative frequency of trades for such product, as well as its share of the total observed weight moved, compared to the week prior.
Indoor flower spanned from $800 to $6,500 per pound; the median price was $1,900/lb.
Greenhouse flower spanned from $1,000 to $3,250 per pound; the median price was $1,242/lb.
Outdoor flower spanned from $800 to $1,700 per pound; the median price was $1,350/lb.
After four consecutive weeks of price rises, the U.S. Spot Index ticked downward very slightly this week to just over $1,675 per pound. The decrease in the composite rate defied the fact that all three grow types saw increases in their volume-weighted averages; although, like the U.S. Spot, pricing for indoor flower was virtually flat. Ultimately, the increased share of the total observed volume traded made up by lower-priced outdoor product caused the overall decline.
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.
In line with the marginal overall decline in the U.S. Spot, rates for product of both medical and adult-use designations saw slight price decreases week-over-week. Flower specified as being for ultimate sale to general consumers fell below the $1,500 threshold, with Alaska’s market seeing an almost $950 price decline compared to last week. Wholesale cannabis destined for sale to those with medical recommendations saw a week-over-week decline of half a percent, dropping it below $1,800 per pound. Of the states with medical cannabis markets, Nevada saw the largest decline in its state Spot price.
Deal sizes for indoor flower ranged from 0.20 to 100 pounds.
Deal sizes for greenhouse flower ranged from 0.20 to 130 pounds.
Deal sizes for outdoor flower ranged from 1 to 100 pounds.
October Forward assessed at $1,460 per pound.
Forward arrangements represented 3.2% of overall market activity this week. The average forward deal decreased to 14 pounds from 18 pounds last week. The proportion of forward deals for outdoor, greenhouse, and indoor-grown flower represented 36%, 45%, and 18% of forward arrangements, respectively. The average forward deal size for monthly delivery for outdoor, greenhouse, and indoor-grown flower was 15 pounds, 14 pounds, and 12.5 pounds, respectively.
At $1,750 per pound, the May Forward represents a premium of 4.2% relative to the current U.S. Spot Index of $1,679. The premium or discount for each forward price, relative to the U.S. Spot Index, is illustrated in the table below.
Sample content from this week's Premium Report:
The histograms below show all observed transactions for March and February of this year, by grow type and price range.
March saw almost 60% of deals for greenhouse flower settle between $1,251 and $1,500 per pound. This consolidation is a significant departure from February, when 58% of trades for such product were observed to settle for above $1,500 per pound.
Sample headlines from this week's Premium Report:
7 April 2017. Copyright © 2017 New Leaf Data Services, LLC. All rights reserved.