cannabis benchmarks weekly report -- published 26 may 2017
U.S. Cannabis Spot Index unchanged at $1,623 per pound.
The simple average (non-volume weighted) price decreased $80 to $1,880 per pound, with 68% of transactions (one standard deviation) in the $1,176 to $2,583 per pound range. The average deal size decreased 6.4% to 8.6 pounds this week, from 9.2 pounds last week. In grams, the Spot price was $3.58, and the simple average price was $4.14.
With the first major surge of greenhouse flower not expected until late June at the earliest, national Transaction Stats continue to be steady week-over-week. The relative frequency of deals for outdoor flower increased by 3% compared to last week, at the expense of trades for warehouse product, while the relative volume of such produce held at 18%. Indoor flower’s share of the total observed weight moved swelled by 2% week-over-week to account for just over half of the documented volume traded.
Indoor flower spanned from $999 to $6,000 per pound; the median price was $2,100/lb.
Greenhouse flower spanned from $1,100 to $3,150 per pound; the median price was $1,307/lb.
Outdoor flower spanned from $700 to $2,300 per pound; the median price was $1,200/lb.
The U.S. Spot Index was flat this week after last week saw the first upward movement observed since the end of March. Though the composite rate was steady, both indoor and outdoor product saw volume-weighted average rates fall slightly. Those decreases were offset by a rise in pricing for greenhouse flower, which rose to surpass the $1,500 per pound threshold. However, this week’s rate for greenhouse product is slightly below the average for such flower to this point in the year, which is $1,520 per pound.
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.
Rates for product in medical and adult-use markets were largely steady this week, with the former falling by just $2, while the latter saw a marginal rise. Rates for medical product in Colorado and Oregon - states with distinct medical and adult-use markets - were both down week-over-week, while composite pricing for flower designated for sale to the general adult public was up, negating falling prices in Washington State’s and Alaska’s adult-use systems.
June Forward unchanged at $1,680 per pound.
Forward arrangements represented 4.5% of overall market activity this week. The average forward deal decreased nominally to 29.2 pounds, from 29.9 pounds last week. The proportion of forward deals for outdoor, greenhouse, and indoor-grown flower represented 44%, 44%, and 13% of forward arrangements, respectively. The average forward deal size for monthly delivery for outdoor, greenhouse, and indoor-grown flower was 26 pounds, 37 pounds, and 10 pounds, respectively.
At $1,680 per pound, the June Forward represents a premium of 3.5% relative to the current U.S. Spot Index of $1,623, which was unchanged from last week. 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:
Michigan transaction specifics are shown in the accompanying table and chart. All prices are volume weighted averages.
Sample headlines from this week's Premium Report:
26 May 2017. Copyright © 2017 New Leaf Data Services, LLC. All rights reserved.