The Colorado Department of Revenue (CDOR) released its monthly Marijuana Sales Report this week, updating sales in the state for March 2023. Total March 2023 adult use and medical cannabis sales, at $139.6 million, were up 11.8% from total sales in February 2023 of $124.8 million, but were down 14.1% from total sales of $162.5 million in March 2022. March 2023 marks a rebound in total sales from a four-year low recorded in February 2023.
March 2023 adult use sales rebounded, jumping 11.8% to $122.4 million from $109 million in February 2023. Year-on-year, sales were down 12.4% from $139.6 million in March 2022.
Medical sales also rebounded from their lowest level in nine years in March 2023, jumping 12.1% to $17.3 million from $15.4 million in February 2023. However, they were down 24.6% from March 2022 sales of $22.9 million.
Colorado wholesale spot price has firmed over the past month, moving up $57 per wholesale pound in mid-May. The outdoor market is well-supported at a double bottom down, formed when outdoor spot made a new low in November 2022 and when that low was tested in March 2023. Those trading against outdoor prices can “lean” on the double bottom by buying when price remains supported and selling product should support give way down to this low price experience in November 2022 and March 2023. Price may move lower at some point, but the fact is price is recovering after Oklahoma and New Mexico took chunks of demand out of the Colorado market via their very large borders with Texas.