CANNABIS BENCHMARKS WEEKLY REPORT -- PUBLISHED MARCH 16, 2018
U.S. Cannabis Spot Index up 1.2% to $1,344 per pound.
The simple average (non-volume weighted) price increased by $6 to $1,379 per pound, with 68% of transactions (one standard deviation) in the $668 to $2,090 per pound range. The average deal size decreased 6.7% to 7 pounds from 7.5 pounds last week. In grams, the Spot price was $2.96, and the simple average price was $3.04.
The relative frequency of trades for indoor flower declined again this week, by 3%, with the majority of the corresponding gain accruing to transactions for greenhouse product. Both greenhouse and outdoor-grown flower saw their shares of the total observed weight moved contract by about 1% week-over-week. Consequently, the relative volume of warehouse product saw a 2% increase compared to last week. Overall in 2018, national Transaction Stats have been relatively stable, with no dramatic weekly shifts observed recently.
The U.S. Spot Index ticked upward for the fifth consecutive week to approach the $1,350 per pound threshold, which it has not exceeded since the first week of this year. Each individual grow type saw a week-over-week rise in its volume-weighted average for the second consecutive week. Average deal sizes for outdoor flower contracted this week after seeing what was apparently a momentary expansion last week.
The national volume-weighted average rate for flower traded wholesale in medical markets has been relatively steady since the beginning of February, hovering around the $1,400 per pound threshold. Meanwhile, the national going rate for product designated for sale to the general adult public continues to rise with the U.S. Spot, driven primarily by California’s new market.
April Forward unchanged at $1,450 per pound.
The average forward deal was unchanged at 54 pounds. The proportion of forward deals for outdoor, greenhouse, and indoor-grown flower represented 36%, 36%, and 28% of forward arrangements, respectively. The average forward deal size for monthly delivery for outdoor, greenhouse, and indoor-grown flower was 62 pounds, 65 pounds, and 31 pounds, respectively.
At $1,450 per pound, the April Forward represents a premium of 7.9% relative to the current U.S. Spot Price of $1,344. 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:
16 March 2018. Copyright © 2018 New Leaf Data Services, LLC. All rights reserved