Cannabis benchmarks weekly report -- published november 17, 2017
U.S. Cannabis Spot Index down 5.3% to $1,368 per pound.
The simple average (non-volume weighted) price increased $8 to $1,712 per pound, with 68% of transactions (one standard deviation) in the $965 to $2,459 per pound range. The average deal size increased 9.5% to 14.7 pounds from 13.4 pounds last week. In grams, the Spot price was $3.02, and the simple average price was $3.77.
Both indoor and greenhouse-grown flower saw modest increases in their shares of the total reported weight moved, which swelled by about 2% and 1%, respectively, week-over-week. The relative frequency of trades involving the former contracted by 5% compared to last week, while greenhouse product saw a roughly 6% increase in that metric. After making up a quarter of all observed volume traded last week, outdoor flower’s share of the total documented weight moved slipped by 3% week-over-week.
Indoor flower spanned from $870 to $5,800 per pound; the median price was $1,900/lb.
Greenhouse flower spanned from $800 to $3,000 per pound; the median price was $1,202/lb.
Outdoor flower spanned from $500 to $2,500 per pound; the median price was $1,000/lb.
After an uncharacteristic jump two weeks ago, the U.S. Spot Index returned to its customary autumn decline this week. Sharp drops in the national volume-weighted average rates for warehouse and outdoor-grown product drove the skid in the overall composite price. Average deal sizes for both the aforementioned grow types were up sharply week-over-week, while that for greenhouse flower contracted for the second consecutive week.
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.
Sliding prices in California and Michigan pushed down the national rate for product traded in medical markets for the second consecutive week.
December Forward unchanged at $1,465 per pound.
The average forward deal increased to 88 pounds, up from 84 pounds last week. The proportion of forward deals for outdoor, greenhouse, and indoor-grown flower represented 43%, 40%, and 17% of forward arrangements, respectively. The average forward deal size for monthly delivery for outdoor, greenhouse, and indoor-grown flower was 134 pounds, 59 pounds, and 42 pounds, respectively.
At $1,465 per pound, the December Forward represents a premium of 7.1% relative to the current U.S. Spot Index of $1,368 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:
Sample content from this week's Premium Report:
Volume-weighted average prices for indoor and greenhouse flower exhibited a close convergence in virtually every state in which both of those grow types were reported to be traded. In Washington State, rates for all three grow types settled within a notably tight range this week.
Last week’s upward trends observed in Washington State and Nevada were sustained this week, while being tempered somewhat in the latter. The decline in Michigan’s Trailing 4-Week Average accelerated after two consecutive weeks of year-to-date low prices in the state. The trend line of the U.S. Spot, as well as those of California, Colorado, and Oregon, continued the gradual downward slides that have characterized recent weeks.
The U.S. Spot Index dropped by 5.3% this week to settle at $1,368 per pound, a new year-to-date low. At this point, 2017’s annual trough is a week later than the establishment of last year’s, of $1,386 per pound, which occurred in the week ending November 11, 2016. Mid-late November is typically marked by increased demand as retailers stock up on inventory for Thanksgiving and Black Friday promotions. However, as has been the case for nearly 18 months at this point, supply appears plentiful enough to meet increased demand around events and holidays, while also avoiding dramatic spikes in national and statewide price assessments. Sliding volume-weighted average rates for warehouse and outdoor-grown product were primarily responsible for pushing down the U.S.’s composite price, with the former falling to a new year-to-date low of $1,584 per pound, the first time in the history of our reporting that the national rate for such flower has dipped below the $1,600 per pound threshold. Outdoor product’s volume-weighted average price sank to just below $900 per pound; this week is the third time this year that such rates for such flower have fallen below that threshold.
17 November 2017. Copyright © 2017 New Leaf Data Services, LLC. All rights reserved