cannabis benchmarks weekly report -- published 9 june 2017
U.S. Cannabis Spot Index up 2.3% at $1,589 per pound.
The simple average (non-volume weighted) price increased $75 to $1,824 per pound, with 68% of transactions (one standard deviation) in the $1,126 to $2,521 per pound range. The average deal size was nominally unchanged at 8.3 pounds. In grams, the Spot price was $3.50, and the simple average price was $4.02.
The relative frequency of deals for greenhouse flower contracted drastically this week after representing nearly one third of all observed trades last week. Transactions for indoor product saw their relative frequency swell by 16%. However, the relative volume of warehouse flower as a percent of the total observed weight moved increased by only 6%, with most of the corresponding decline felt by greenhouse product, which saw a 5% decrease in this metric.
Indoor flower spanned from $999 to $6,500 per pound; the median price was $2,000/lb.
Greenhouse flower spanned from $600 to $2,500 per pound; the median price was $1,320/lb.
Outdoor flower spanned from $800 to $1,800 per pound; the median price was $1,050/lb.
The U.S. Spot Index ticked upward this week by just over 2%, despite declines in the volume-weighted average rates of both sun-fueled grow types. Pricing for outdoor-grown product was down only slightly. Despite the fall in rates for greenhouse product being proportionally larger than the increase experienced by indoor flower, the latter wielded the greatest influence on the national composite rate this week.
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.
Pricing for both medical and adult-use product ticked upward with the overall U.S. Spot this week. Increases in the composite rates in the major medical markets of California, Michigan, and Nevada drove the 2.4% bump in pricing for medical product, pushing it above the $1,650 per pound threshold. Modest increases in Colorado’s and Oregon’s composite rates were modulated by a decrease of similar magnitude in Washington State’s Spot, resulting in a less than 1% jump in the national volume-weighted average for product wholesaled in adult-use markets.
July Forward unchanged at $1,525 per pound.
Forward arrangements represented 3.6% of overall market activity this week. The average forward deal increased to 33.8 pounds, from 21.7 pounds last week, driven by outdoor deals of larger volume. The proportion of forward deals for outdoor, greenhouse, and indoor-grown flower represented 50%, 33%, and 17% of forward arrangements, respectively. The average forward deal size for monthly delivery for outdoor, greenhouse, and indoor-grown flower was 52 pounds, 15 pounds, and 17.5 pounds, respectively.
At $1,525, the July Forward represents a discount of 4% relative to the current U.S. Spot Index of $1,589. 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:
Maine’s Spot Index was the only state-level composite rate outside of the four major markets to settle below $2,000 per pound, a frequent occurrence in recent weeks.
Maine transaction specifics are shown in the accompanying table and chart. All prices are volume weighted averages.
Sample headlines from this week's Premium Report:
9 June 2017. Copyright © 2017 New Leaf Data Services, LLC. All rights reserved.