CANNABIS BENCHMARKS WEEKLY REPORT -- PUBLISHED MAY 25, 2018
U.S. Cannabis Spot Index up 2.8% to $1,287 per pound.
The simple average (non-volume weighted) price increased by $42 to $1,416 per pound, with 68% of transactions (one standard deviation) in the $657 to $2,175 per pound range. The average deal size decreased nominally to slightly below 5.6 pounds. In grams, the Spot price was $2.84, and the simple average price was $3.12.
National Transaction Stats were stable for the most part again this week, a situation that has persisted since late April. The relative frequency of transactions for indoor-grown flower decreased by 1% week-over-week, with the corresponding increase accruing to trades for greenhouse product. Outdoor-grown flower saw a marginal contraction in its share of the total reported weight moved nationally. However, the less than 1% decrease was so small that it did not cause discernible movement in the relative volumes of the other grow types.
The U.S. Spot Index saw its first week-over-week increase since late March. Rises in the volume-weighted average prices of all three grow types worked to lift the national composite price, an effort spearheaded by warehouse and outdoor flower. The average deal size for greenhouse flower was up again, after expanding by almost 9% last week, but contractions in the average deal sizes for indoor and outdoor product maintained a trend that has marked this year.
National rates for product designated as medical and adult-use rose largely in concert with the U.S. Spot Index. Both sectors of California’s market saw increases in their volume-weighted average rates, while movement in the other major Western markets was slight. Small downturns in the medical markets of Arizona, Michigan, and New Mexico were documented this week.
June Forward assessed down $25 to close at $1,325 per pound.
The average forward deal was 59 pounds. The proportion of forward deals for outdoor, greenhouse, and indoor-grown flower represented 51%, 34%, and 15% of forward arrangements, respectively. The average forward deal size for monthly delivery for outdoor, greenhouse, and indoor-grown flower was 58 pounds, 68 pounds, and 43 pounds, respectively.
At $1,325 per pound, the June Forward represents a premium of 3% relative to the current U.S. Spot Price of $1,287 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:
25 May 2018. Copyright © 2018 New Leaf Data Services, LLC. All rights reserved