CANNABIS BENCHMARKS WEEKLY REPORT -- PUBLISHED JANUARY 19, 2018
U.S. Cannabis Spot Index down 3.5% to $1,292 per pound.
The simple average (non-volume weighted) price decreased $96 to $1,450 per pound, with 68% of transactions (one standard deviation) in the $741 to $2,159 per pound range. The average deal size decreased 3.9% to 12.4 pounds from 12.9 pounds last week. In grams, the Spot price was $2.85, and the simple average price was $3.20.
Warehouse flower’s share of the total observed weight moved decreased slightly week-over-week. The relative volume of greenhouse product was down by about 4% compared to last week, while that of outdoor flower expanded by about 6% to account for a quarter of all reported volume traded. Despite the week-over-week fluctuations in the relative volumes of the three grow types, the relative frequency of trades for product generated by each cultivation method was virtually identical to last week.
The U.S. Spot Index slid further this week, compounding last week’s almost 11% decline. The decrease in the national composite price was due both to decreases in the volume-weighted average rates for indoor and greenhouse product, as well as the fact that low-priced outdoor flower, despite experiencing a small week-over-week price rise, constituted a larger proportion of the total volume that was reported to be traded nationwide.
After experiencing declines of comparable proportions last week, the national rate for flower sold in the nation’s adult-use markets decreased by a greater degree than that for product wholesaled in medical systems. The over 6% drop in the former was due mainly to steep slides in the adult-use markets of Oregon and Washington State.
February 2018 Forward down $50 at $1,400 per pound.
The average forward deal decreased more than 4 pounds to 60 pounds. The proportion of forward deals for outdoor, greenhouse, and indoor-grown flower represented 58%, 23%, and 19% of forward arrangements, respectively. The average forward deal size for monthly delivery for outdoor, greenhouse, and indoor-grown flower was 65 pounds, 63 pounds, and 42 pounds, respectively.
At $1,400 per pound, the February Forward represents a premium of 8.3% relative to the current U.S. Spot Index of $1,292 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:
19 January 2018. Copyright © 2017 New Leaf Data Services, LLC. All rights reserved