Cannabis Price Monitor - June 2024
July 9, 2024

Monthly Wholesale Cannabis Price Monitor for June 2024

The U.S. Cannabis Spot Price Index reached yearly pricing lows in several categories in June. The Cannabis Spot Price Index dropped to $978 per pound to close the month, a low not seen since late September 2023. The downward trend in pricing was fueled by notable increases in the number of transactions and the average volume of outdoor grown flower deals as cultivators secure funds to support their 2024 growing and harvesting efforts. The U.S. Outdoor Cannabis Flower Spot Index also hit a new low for the year of $395 per pound. Outdoor cannabis flower pricing has not reached this level since late 2022.

While outdoor grown flower prices have been on a negative trajectory, greenhouse prices are trending upward. The U.S. Greenhouse Cannabis Flower Spot Index reached a yearly high of $789 per pound on June 28th. After several years of slowly declining, the greenhouse spot index is climbing after averaging $668 per pound in 2023. Our analysis indicates increases in purchases of prepackaged greenhouse grown flower, in both east and west coast markets, have pushed the average price up while also chipping away at indoor grown flower prices in competitive markets such as Massachusetts and Vermont.

June was an active month for wholesale prices across many of the 22 state markets covered by Cannabis Benchmarks. Many states experienced significant price erosion between the closing average price in June compared to May. Nevada, Illinois, and Montana saw the largest decreases in their state spot price indexes, all dropping over 10% since May. The Connecticut, Washington D.C. and Maryland markets performed similarly, with each state seeing a decline of nearly 9% month-on-month. Alaska, California and Washington showed positive, albeit marginal, increases in pricing during the same period.

Arizona cannabis prices closed June on a positive note, climbing 9.6% in the final week after several weeks of declining. Bulk greenhouse flower transactions continue to impact state level pricing, yet prepackaged goods are keeping prices at a somewhat even level, as both greenhouse and indoor prices are currently within $10 of what they were to enter 2024. Michigan greenhouse grown flower pricing continues to rise, approaching a convergence with indoor grown flower prices. The spread for indoor and greenhouse has reached $8. This convergence of grow type pricing has occurred in other states. During portions of 2019 and 2020, greenhouse flower traded at a higher value than indoor grown flower in Colorado. As the Michigan cannabis market continues to mature, indoor producers will face a multitude of factors that squeeze their margins, most notably the influx of lower priced greenhouse grown flower that forces them to compete with their wholesale prices to maintain shelf presence at retailers.

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