CANNABIS BENCHMARKS WEEKLY REPORT -- PUBLISHED MARCH 30, 2018
U.S. Cannabis Spot Index up 1.8% to $1,392 per pound.
The simple average (non-volume weighted) price decreased by $85 to $1,513 per pound, with 68% of transactions (one standard deviation) in the $696 to $2,330 per pound range. The average deal size decreased 13% to 8.1 pounds from 9.3 pounds last week. In grams, the Spot price was $3.07, and the simple average price was $3.34.
National transaction Stats were stable for the most part compared to last week. The relative frequency of trades for greenhouse-grown product increased by 2% week-over-week. The corresponding decline was borne by deals involving outdoor flower. Warehouse-grown product saw its share of the total reported weight moved swell slightly, by 2% relative to the week prior, which resulted in the relative volume of greenhouse flower shrinking by the same proportion.
The U.S. Spot Index this week increased by virtually the same magnitude as it did last week. Although the current increase was due largely to rising volume-weighted average rates for the two sun-fueled grow types, whereas a significant rise in the national wholesale price of indoor product drove last week’s uptick in the composite rate. Average deal sizes declined across the board after significant expansions were observed last week.
The national price for flower traded in medical markets recovered somewhat after last week’s drop off. Arizona was the only state with a large medical cannabis program to see a downturn in its Spot Index, and a small one at that. Despite a slight uptick in the average price for flower in California’s adult-use sector, increased volume in the lower-priced recreational markets pushed down the national volume-weighted average for flower to be sold to general adult consumers.
April Forward closes at $1,400 per pound.
The average forward deal was 68 pounds. The proportion of forward deals for outdoor, greenhouse, and indoor-grown flower represented 33%, 41%, and 26% of forward arrangements, respectively. The average forward deal size for monthly delivery for outdoor, greenhouse, and indoor-grown flower was 88 pounds, 76 pounds, and 31 pounds, respectively.
At $1,400 per pound, the April Forward represents a premium of 0.6% relative to the current U.S. Spot Price of $1,392 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:
30 March 2018. Copyright © 2018 New Leaf Data Services, LLC. All rights reserved