CANNABIS BENCHMARKS WEEKLY REPORT -- PUBLISHED APRIL 6, 2018
U.S. Cannabis Spot Index down 0.4% to $1,386 per pound.
The simple average (non-volume weighted) price decreased by $14 to $1,499 per pound, with 68% of transactions (one standard deviation) in the $703 to $2,295 per pound range. The average deal size decreased 15.8% to 6.8 pounds from 8.1 pounds last week. In grams, the Spot price was $3.06, and the simple average price was $3.30.
The relative frequency of transactions involving greenhouse-grown flower decreased by 7% week-over-week. A slight majority of the corresponding increase accrued to trades for outdoor product. The relative volumes of each individual grow type held fairly steady again this week. Outdoor flower’s share of the total reported weight moved was stable week-over-week; that of greenhouse product contracted slightly, by 1%, resulting in an increase of the same proportion in the relative volume of warehouse flower.
The U.S. Spot Index saw downward movement, albeit of very modest magnitude, for the first time in nearly two months. The overall decline was driven by sliding prices for the sun-fueled grow types. The composite average transaction volume contracted by a significant measure for the second consecutive week, due to shrinking average deal sizes for trades involving indoor and outdoor product.
Similar to last week, historic lows that had been frequent earlier this year are becoming more sparse. Washington State continues to see wholesale prices in its legal cannabis market sink to unprecedented levels. This week’s composite price of $803 per pound is the lowest observed in the history of our reporting, while the same can be said of the volume-weighted average for outdoor flower in the state, which settled at $578 per pound this week. Colorado and Oregon both saw historic lows for certain individual grow types in their respective markets, but prices in those states have seen minor recoveries in recent weeks, perhaps due to increased buying ahead of 4/20.
October Forward assessed at $1,425 per pound.
The average forward deal was 67 pounds. The proportion of forward deals for outdoor, greenhouse, and indoor-grown flower represented 34%, 38%, and 28% of forward arrangements, respectively. The average forward deal size for monthly delivery for outdoor, greenhouse, and indoor-grown flower was 85 pounds, 74 pounds, and 34 pounds, respectively.
The October Forward is initially assessed at $1,425, essentially equal to the average U.S. Spot Price of $1,421 witnessed during the month of October 2017. For context, the month-on-month decline (driven predominantly by the fall sun-grown harvest) from September to October 2017 was 11.8% (from $1,612 to $1,421 per pound), while the decline during the same period in 2016 was 8.1% (from $1,644 to $1,511 per pound). At $1,475 per pound, the May Forward represents a premium of 6.4% relative to the current U.S. Spot Price of $1,386 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:
6 April 2018. Copyright © 2018 New Leaf Data Services, LLC. All rights reserved