CANNABIS BENCHMARKS WEEKLY REPORT -- PUBLISHED APRIL 27, 2018
U.S. Cannabis Spot Index down 1.4% to $1,313 per pound.
The simple average (non-volume weighted) price increased by $16 to $1,445 per pound, with 68% of transactions (one standard deviation) in the $658 to $2,231 per pound range. The average deal size decreased nominally to 5.8 pounds from 5.9 pounds last week. In grams, the Spot price was $2.89, and the simple average price was $3.19.
National Transaction Stats were stable for the most part compared to last week. The relative frequency of transactions involving greenhouse flower increased slightly, by almost 2% week-over-week, while that for outdoor product declined by the same proportion. Indoor flower’s share of the total documented weight moved shrank modestly this week, by 1%. The corresponding increase accrued to greenhouse product’s relative volume, while that for outdoor flower was flat.
The U.S. Spot Index declined for the fourth consecutive week. All three grow types saw downturns in their volume-weighted averages, with this week’s rates for greenhouse and outdoor product falling to historic lows. The average deal size for trades involving outdoor flower expanded for the second consecutive week, while those of the other two grow types continued to contract.
In the wake of 4/20, the national volume-weighted average price for flower traded in adult-use systems slid by 3%, on the back of declines in California, Washington State, Nevada, and Alaska. The drop off in wholesale pricing in the Golden State’s adult-use sector was dramatic, as we note below in the Spot Index commentary for California. Upticks in the markets of Illinois, Massachusetts, Michigan, and New Mexico worked to push up the national medical rate slightly.
May Forward closes down $25 at $1,400 per pound.
The average forward deal was 62 pounds. The proportion of forward deals for outdoor, greenhouse, and indoor-grown flower represented 49%, 35%, and 16% of forward arrangements, respectively. The average forward deal size for monthly delivery for outdoor, greenhouse, and indoor-grown flower was 62 pounds, 69 pounds, and 43 pounds, respectively.
At $1,400 per pound, the May Forward represents a premium of 6.7% relative to the current U.S. Spot Price of $1,313 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:
27 April 2018. Copyright © 2018 New Leaf Data Services, LLC. All rights reserved