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U.S. Cannabis Spot Index

U.S. Cannabis Spot Index — November 6, 2020

U.S. Cannabis Spot Index — Published November 6, 2020

U.S. Cannabis Spot Index down 0.7% to $1,647 per pound.

The simple average (non-volume weighted) price decreased $11 to $1,859 per pound, with 68% of transactions (one standard deviation) in the $1,115 to $2,603 per pound range. The average reported deal size increased to 2.3 pounds. In grams, the Spot price was $3.63 and the simple average price was $4.10.

The relative frequencies of trades for each grow type were essentially unchanged from last week.

The relative volume of outdoor flower expanded by almost 3% this week. The relative volumes of indoor and greenhouse product contracted by about 1% and 2%, respectively.

With the close of October, much of the country’s legal outdoor crop has been harvested, but early reports out of Oregon state that it has not yet hit the market for the most part. It will likely be several weeks before significant portions of this year’s crop are dried, trimmed, tested, packaged, and sent to retailers. While the overall state of the harvest in West Coast states and Colorado is still unclear, some initial reports from market participants in Oregon indicate that some outdoor crops that were exposed to smoke and ash from the wildfires earlier this year are finishing favorably. Some are worried more about disruptions to power and water caused by the wildfires, and how that impacted the ability to care for growing plants, more so than smoke damage.

In the meantime, the upward momentum of the U.S. Spot Index accelerated in October relative to September. While the national composite price last year rose to its annual peak in mid-November 2019, this year the last two weeks have seen consecutive downturns in the U.S. Spot.

Strong sales are continuing, however, with the holidays approaching as well. Adult-use markets in Massachusetts and Illinois both saw new monthly sales records set in October. It remains to be seen how – or if – the worsening COVID-19 pandemic will impact demand during the upcoming holiday season. Prior to this year, Thanksgiving and the end-of-year holidays had become a period when retailers run promotions and specials to drive sales, including dubbing the day after Thanksgiving “Green Friday,” to accompany “Black Friday” deals run by traditional retailers.

May 2021 Forward initially assessed at $1,565 per pound.

The average reported forward deal size was nominally unchanged at 23 pounds. The proportions of forward deals for outdoor, greenhouse, and indoor-grown flower were 40%, 36%, and 25% of forward arrangements, respectively. The average forward deal sizes for monthly delivery for outdoor, greenhouse, and indoor-grown flower were 29 pounds, 17 pounds, and 23 pounds, respectively.

At $1,590 per pound, the December Forward represents a discount of 3.5% relative to the current U.S. Spot Price of $1,647 per pound. The premium or discount for each Forward price, relative to the U.S. Spot Index, is illustrated in the table below.

CANADA CANNABIS SPOT INDEX

WHOLESALE MARKET OBSERVER

Marijuana Legalization on the 2020 Ballot

With Rising Adult-Use Marijuana Prices, Registered Medical Marijuana Patient Count in Illinois Jumps Up in September

HEMP MARKET INSIDER

Introduction to the U.S. Grain Hemp Market

October 2020 Hemp Spot Price Index Report

Headlines from this week’s Premium Report:

Five States Legalized Cannabis in Some Form in Tuesday’s Elections: Arizona (Rec), Mississippi (Med), Montana (Rec), New Jersey (Rec), and South Dakota (Rec & Med)

Arizona’s Large Medical Program Well-Positioned to Expand to Serve Adult-Use Consumers

New Jersey’s Nascent Adult-Use Industry, Building on Small Medical Program, Will Need Time to Grow to Meet Massive In and Out-of-State Demand

Adult-Use Retailers Set New Sales Record in October, Exceeding $83M; 2020’s YTD Tally Climbs to Over $542M

Recreational Sales Top $75M in October, Another New Record, With Average Daily Sales Increasing Almost 8% from Prior Month

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Cannabis Benchmarks®, a division of New Leaf Data Services, LLC

6 November 2020. Copyright © 2020 New Leaf Data Services, LLC. All rights reserved

U.S. Cannabis Spot Index — October 30, 2020

U.S. Cannabis Spot Index — Published October 30, 2020

U.S. Cannabis Spot Index down 0.4% to $1,658 per pound.

The simple average (non-volume weighted) price decreased $9 to $1,870 per pound, with 68% of transactions (one standard deviation) in the $1,105 to $2,636 per pound range. The average reported deal size was nominally unchanged at 2.2 pounds. In grams, the Spot price was $3.66 and the simple average price was $4.12.

The relative frequencies of trades for each grow type were essentially unchanged from last week.

The relative volume of outdoor flower grew by about 3% this week. The relative volumes of indoor and greenhouse product contracted by about 2% and 1%, respectively.

The U.S. Spot Index averaged $1,645 per pound this month, up 5.2% from September. October 2020’s national mean composite price is the highest observed since April 2017; it also represents a year-over-year increase of 14.9% relative to October 2019. The U.S. Spot and state-level Spot Indices for most major markets have been trending upward for much of the time that the COVID-19 pandemic has been with us. This week’s national composite rate is up by 22.2%, or roughly $300, from March 27, by which time most of the sizable state markets covered in our reporting had enacted stay-at-home orders.

We have noted that there is some uncertainty regarding this year’s fall outdoor harvest due to the wildfires that ravaged the West Coast. It should also be pointed out that indoor production will likely see a boost with the help of cooler weather. Summer heat can strain climate control systems and negatively impact yield and product quality; and this summer saw record-breaking temperatures in numerous regions of the country, including the major markets on the West Coast and in Colorado, as well as in Arizona.

Recent demand trends show sales plateauing in recent months, albeit at elevated levels. Increased supply from both outdoor and indoor growers may help moderate wholesale price increases. However, with the coronavirus surging across the country, increased restrictions and possibly even new shutdowns could result in consumers diverting disposable income from disallowed activities to cannabis, behavior that was likely a big contributor to earlier sales growth.

November Forward closes up $35 to $1,625 per pound.

The average reported forward deal size increased to 23 pounds. The proportions of forward deals for outdoor, greenhouse, and indoor-grown flower were 39%, 38%, and 24% of forward arrangements, respectively. The average forward deal sizes for monthly delivery for outdoor, greenhouse, and indoor-grown flower were 27 pounds, 17 pounds, and 24 pounds, respectively.

At $1,625 per pound, the November Forward represents a discount of 2% relative to the current U.S. Spot Price of $1,658 per pound. The premium or discount for each Forward price, relative to the U.S. Spot Index, is illustrated in the table below.

CANADA CANNABIS SPOT INDEX

WHOLESALE MARKET OBSERVER

With Rising Adult-Use Marijuana Prices, Registered Medical Marijuana Patient Count in Illinois Jumps Up in September

Maine Adult-Use Marijuana Sales Finally See Daylight

HEMP MARKET INSIDER

October 2020 Hemp Spot Price Index Report

Certified Organic Hemp: A Small but Growing Industry Niche, Fueled by Consumer Demand

Headlines from this week’s Premium Report:

Report from Regulators Show Concentrates Commanded Increasing Market Share, Industry Consolidation Advanced in 2019

Rise in Wholesale Prices this Year Proportionally Smaller than in 2019, Despite Record Sales

January 1, 2021 Deadline for Product Labels to Be Approved Under New Rules Approaching

Additional Comment Period on Establishment of Adult-Use Delivery Licenses Opened by Officials

Arizona, Montana, Mississippi, New Jersey, and South Dakota Voters to Decide on Adult-Use and Medical Cannabis Legalization Initiatives Next Week

Are you a licensed market participant in the U.S. or Canada?

Do you support wholesale market transparency?

Become a member of our Price Contributor Network and receive discounted pricing and exclusive analysis!

Cannabis Benchmarks®, a division of New Leaf Data Services, LLC

30 October 2020. Copyright © 2020 New Leaf Data Services, LLC. All rights reserved

U.S. Cannabis Spot Index — October 23, 2020

U.S. Cannabis Spot Index — Published October 23, 2020

U.S. Cannabis Spot Index up 1.1% to $1,665 per pound.

The simple average (non-volume weighted) price increased $16 to $1,879 per pound, with 68% of transactions (one standard deviation) in the $1,110 to $2,648 per pound range. The average reported deal size was nominally unchanged at 2.2 pounds. In grams, the Spot price was $3.67 and the simple average price was $4.14.

The relative frequency of trades for indoor flower increased by almost 3% this week. The relative frequencies of transactions for greenhouse and outdoor product decreased by about 2% and 1%, respectively.

The relative volumes of each grow type observed to be traded nationally were virtually unchanged from a week ago.

New data out of several states with sizable legal cannabis markets continues to show that the unprecedented sales growth enjoyed by licensed retailers this summer is cooling. Colorado saw an uncharacteristic decrease in monthly retail revenues from July to August, a phenomenon that only occurred once in the previous six years. In Michigan and Oklahoma, September sales ticked downward, the second straight decrease in monthly revenues in both states.

While sales growth appears to be slowing, demand is still elevated significantly relative to last year. Additionally, seasonal sales trends typically see decreasing monthly revenues from September through November. This year, however, the declines seen in September in the states that have reported data for that month are of relatively small proportions, compared to sometimes significant downturns from August to September in prior years. Furthermore, sales are continuing to grow in some states; both Massachusetts and Illinois saw increases in monthly revenues in September, albeit fairly modest ones compared to those documented in the summer.

All this to say, demand remains strong enough to strain supplies in both mature markets and those where production capacity is still developing; this despite the fact that monthly sales records and remarkable sales spikes are no longer occurring nearly every month, in virtually every major state market covered in our reporting, as they were just a few months ago.

November Forward up $30 to $1,590 per pound.

The average reported forward deal size was nominally unchanged at 22 pounds. The proportions of forward deals for outdoor, greenhouse, and indoor-grown flower were 37%, 41%, and 27% of forward arrangements, respectively. The average forward deal sizes for monthly delivery for outdoor, greenhouse, and indoor-grown flower were 25 pounds, 18 pounds, and 25 pounds, respectively.

At $1,590 per pound, the November Forward represents a discount of 4.5% relative to the current U.S. Spot Price of $1,665 per pound. The premium or discount for each Forward price, relative to the U.S. Spot Index, is illustrated in the table below.

CANADA CANNABIS SPOT INDEX

WHOLESALE MARKET OBSERVER

Maine Adult-Use Marijuana Sales Finally See Daylight

Medical Marijuana Demand in Arizona Persists as Vote on Recreational Legalization Nears

HEMP MARKET INSIDER

Certified Organic Hemp: A Small but Growing Industry Niche, Fueled by Consumer Demand

U.S. Hemp Fiber and Textiles Market Searches for Footing

Headlines from this week’s Premium Report:

August Sales See Month-Over-Month Decrease for Only Second Time in Seven Years

Total September Revenues Slip, Primarily on Decline in Medical Cannabis Sales; Average Daily Sales in Adult-Use Sector Up Compared to August

Adult-Use Sales Continue to Ascend in September, Approach $80 Million

September Medical Cannabis Sales Down, but Total Monthly Retail Revenues Reach $99 Million, a New Record

Medical Sales Slide for Second Straight Month in September; Active Patient and Business License Numbers Also Begin to Decrease After Previously Explosive Growth

Are you a licensed market participant in the U.S. or Canada?

Do you support wholesale market transparency?

Become a member of our Price Contributor Network and receive discounted pricing and exclusive analysis!

Cannabis Benchmarks®, a division of New Leaf Data Services, LLC

23 October 2020. Copyright © 2020 New Leaf Data Services, LLC. All rights reserved

U.S. Cannabis Spot Index — October 16, 2020

U.S. Cannabis Spot Index — Published October 16, 2020

U.S. Cannabis Spot Index up 1.5% to $1,647 per pound.

The simple average (non-volume weighted) price increased $63 to $1,863 per pound, with 68% of transactions (one standard deviation) in the $1,083 to $2,644 per pound range. The average reported deal size increased to 2.2 pounds. In grams, the Spot price was $3.63 and the simple average price was $4.11.

September sales data continues to show demand elevated well above pre-COVID levels. However, similar to August, there are also some signs that it may have reached, or at least be near, a current peak. Sales volume to patients in Arizona’s medical cannabis system declined for the second straight month in September. Adult-use sales in Illinois continued to climb, but growth has slowed in recent months after a big jump in July, although that may be due in part to still-developing production capacity and tight supply.

As record sales have strained supplies even in mature and previously well-supplied markets, new regulatory developments could add more costs for businesses, potentially applying further upward pressure on wholesale prices. Proposed rules in Oregon and Washington would enact new regulations around additives in vape products in the former state and implement required pesticide and heavy metals tests for products in the latter. Mandatory quality assurance and safety screenings of products will begin in Arizona’s market in November for the first time in the history of the state’s medical cannabis program.

November Forward up $15 to $1,560 per pound. The average reported forward deal size was nominally unchanged at 22 pounds. The proportions of forward deals for outdoor, greenhouse, and indoor-grown flower were 35%, 40%, and 25% of forward arrangements, respectively. The average forward deal sizes for monthly delivery for outdoor, greenhouse, and indoor-grown flower were 24 pounds, 18 pounds, and 25 pounds, respectively.

At $1,560 per pound, the November Forward represents a discount of 5.3% relative to the current U.S. Spot Price of $1,647 per pound. The premium or discount for each Forward price, relative to the U.S. Spot Index, is illustrated in the table below.

CANADA CANNABIS SPOT INDEX

WHOLESALE MARKET OBSERVER

Fires in California Continue to Displace Residents While Fall Harvest Ramps Up

Medical Marijuana Demand in Arizona Persists as Vote on Recreational Legalization Nears

HEMP MARKET INSIDER

An Introduction to Industrial Hemp Developments in Latin America

U.S. Hemp Fiber and Textiles Market Searches for Footing

Are you a licensed market participant in the U.S. or Canada?

Do you support wholesale market transparency?

Become a member of our Price Contributor Network and receive discounted pricing and exclusive analysis!

Cannabis Benchmarks®, a division of New Leaf Data Services, LLC

16 October 2020. Copyright © 2020 New Leaf Data Services, LLC. All rights reserved

U.S. Cannabis Spot Index — October 9, 2020

U.S. Cannabis Spot Index — Published October 9, 2020

U.S. Cannabis Spot Index down 0.7% to $1,623 per pound.

The simple average (non-volume weighted) price increased $31 to $1,800 per pound, with 68% of transactions (one standard deviation) in the $1,045 to $2,556 per pound range. The average reported deal size was nominally unchanged at 2.0 pounds. In grams, the Spot price was $3.58 and the simple average price was $3.97.

The relative frequency of trades for greenhouse flower decreased by 2% this week. The relative frequency of transactions for indoor product increased by the same proportion, while that for deals involving outdoor flower was unchanged.

The relative volume of warehouse product contracted by 1%. The relative volume of outdoor flower expanded by the same proportion, while that for greenhouse product was unchanged.

September sales data released this week continues to show demand elevated well above pre-COVID levels. However, similar to August, there are also some signs that it may have reached, or at least be near, a current peak. Sales volume to patients in Arizona’s medical cannabis system declined for the second straight month in September. Adult-use sales in Illinois continued to climb, but growth has slowed in recent months after a big jump in July, although that may be due in part to still-developing production capacity and tight supply.

As record sales have strained supplies even in mature and previously well-supplied markets, new regulatory developments could add more costs for businesses, potentially applying further upward pressure on wholesale prices. Proposed rules in Oregon and Washington would enact new regulations around additives in vape products in the former state and implement required pesticide and heavy metals tests for products in the latter. Mandatory quality assurance and safety screenings of products will begin in Arizona’s market in November for the first time in the history of the state’s medical cannabis program.

With rules tightening in some states with more mature markets, the establishment and expansion of younger ones will capture demand that was likely supplied previously by illicit sellers. The sizable markets of Los Angeles and Michigan both announced new opportunities to apply for cannabis business licenses this week. Meanwhile, adult-use sales began today in Maine and a new law set the stage for a regulated commercial cannabis market in Vermont in the future.

U.S. Cannabis Spot Index U.S. Cannabis Spot Index — November 6, 2020 U.S. Cannabis Spot Index — Published November 6, 2020 U.S. Cannabis Spot Index down 0.7% to $1,647 per pound. The

Wholesale marijuana snapshot: A review of prices in adult-use markets

Published April 3, 2020 | By Bart Schaneman

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4 comments on “ Wholesale marijuana snapshot: A review of prices in adult-use markets ”

It would be super cool if you could standardize your rubrics so we could do an actual comparison across borders.

It’s also a shame we are still constrained by state borders, national legalization would do a lot to stimulate legal economic activity.

States such as Illinois have gotten Adult Use legalized by promising thousands of highly paid jobs for the people in the State. I see little chance (read zero) that States will support importing cannabis products from low cost centers like Colorado and Oregon.

I am based here in Oklahoma and rarely see any charts or comparatives using numbers from Oklahoma. Always interested in seeing where we stand.

Over the past several weeks, Marijuana Business Daily took a deep dive into average wholesale prices in state-legal recreational marijuana markets.