CANNABIS BENCHMARKS WEEKLY REPORT -- PUBLISHED JANUARY 26, 2018
U.S. Cannabis Spot Index down 4.1% to $1,239 per pound.
The simple average (non-volume weighted) price decreased $90 to $1,360 per pound, with 68% of transactions (one standard deviation) in the $712 to $2,008 per pound range. The average deal size decreased 12.4% to 10.8 pounds from 12.4 pounds last week. In grams, the Spot price was $2.73, and the simple average price was $3.00.
Warehouse flower’s share of the total observed weight moved decreased again this week, by 3%, while greenhouse and outdoor product saw increases of 1% and 2%, respectively in their relative volumes. Both indoor and outdoor flower experienced upticks in the relative frequency of trades, which grew by 1% each week-over-week. Modest movement in Transaction Stats show that recent price declines are not due to increased proportions of lower-priced grow types being traded, but slumping prices generally in the major markets.
The trend line of the U.S. Spot Index closed the first month of 2018 by continuing the downward momentum that began with the new year. The national Trailing 4-Week Average this week dipped below that of California, as the Golden State’s composite price is trending down, but not as quickly as that of the country’s as a whole. The national rate is being pulled down recently by the markets of California’s West Coast neighbors, as well as Colorado, with the former seeing the steepest recent falls in their Trailing 4-Week Averages. This week, the trend line of Washington State’s Spot price sank below Colorado’s for the first time since February 2017. Colorado’s composite price has in recent weeks stabilized at just under the rates it fell to initially in December last year.
The national rate for flower traded in adult-use markets continued to slide faster than that in medical systems. Last year, higher prices in Oregon helped moderate the nationwide volume-weighted average for product sold for use by recreational consumers. Now, a sharp drop Oregon’s Spot, combined with low rates in Colorado and Washington, are tanking such prices.
February 2018 Forward closes month down $50 at $1,350 per pound.
The average forward deal decreased 5 pounds to 55 pounds. The proportion of forward deals for outdoor, greenhouse, and indoor-grown flower represented 50%, 25%, and 25% of forward arrangements, respectively. The average forward deal size for monthly delivery for outdoor, greenhouse, and indoor-grown flower was 64 pounds, 58 pounds, and 33 pounds, respectively.
At $1,350 per pound, the February Forward represents a premium of 9% relative to the current U.S. Spot Index of $1,239 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:
26 January 2018. Copyright © 2017 New Leaf Data Services, LLC. All rights reserved