CANNABIS BENCHMARKS WEEKLY REPORT -- PUBLISHED MARCH 9, 2018
U.S. Cannabis Spot Index up 2.4% to $1,327 per pound.
The simple average (non-volume weighted) price decreased by $16 to $1,373 per pound, with 68% of transactions (one standard deviation) in the $671 to $2,076 per pound range. The average deal size decreased 6.7% to 7.5 pounds from 8 pounds last week. In grams, the Spot price was $2.93, and the simple average price was $3.03.
The relative frequency of trades for indoor flower declined this week, by 6%, with the corresponding gain accruing entirely to transactions for greenhouse flower. Outdoor-grown product saw its share of the total observed weight moved contract by over 5% week-over-week. Consequently, the relative volume of greenhouse flower increased by almost that proportion, while warehouse product saw a slight bump in its share of the observed volume traded compared to last week.
The charts below and to the right illustrate all documented transactions from February 2018 and the same month the year prior by grow type and price range. Trades for the two sun-fueled grow types were executed for significantly lower rates this year than they were last year.
The U.S. Spot Index increased for the fourth consecutive week, exceeding $1,300 per pound for the first time since the week ending January 12th. Each individual grow type saw a week-over-week rise in its volume-weighted average, with greenhouse product seeing the largest proportional increase. Average deal sizes for outdoor flower expanded this week after several weeks of shrinking consistently.
An increase in the volume-weighted average rate for product designated as adult-use in California was the primary driver behind the increase in the national price for such flower. New testing requirements that began in February do not appear to be increasing the price for product in Colorado’s medical market, which this week settled for virtually the same rate as flower in the state’s adult-use sector at just above $1,000 per pound.
April Forward unchanged at $1,450 per pound.
The average forward deal was 54 pounds. The proportion of forward deals for outdoor, greenhouse, and indoor-grown flower represented 43%, 30%, and 27% of forward arrangements, respectively. The average forward deal size for monthly delivery for outdoor, greenhouse, and indoor-grown flower was 61 pounds, 65 pounds, and 28 pounds, respectively.
At $1,450 per pound, the April Forward represents a premium of 9.3% relative to the current U.S. Spot Price of $1,327. The premium or discount for each Forward price, relative to the U.S. Spot Index, is illustrated in the table below.
Last month, over half of all deals for greenhouse flower closed for $1,000 per pound or below, while none were observed to do so in February 2017. Over 90% of all reported trades for outdoor product settled for $1,250 per pound or below last month, up from 36% in February 2017.
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9 March 2018. Copyright © 2017 New Leaf Data Services, LLC. All rights reserved