Companies and Brands

Marijuana Price Ticks Down Again

Paul Ausick

Published: June 25, 2016 9:01 am

Last Updated: January 13, 2020 6:23 am

For the week ended Friday, June 24, the spot price index for a pound of cannabis decreased 0.5% from $1,978 in the prior week to $1,969. According to the analysts at Cannabis Benchmarks, the simple average price for a gram rose from $4.970 to $4.87.

The futures price for the near month (July) dropped $35 to $2,080 per pound. For the month of August, the forward price fell from $2,180 to $2,160 a pound. The six-month forward price for December remained unchanged at $1,725.

About two-thirds of the past week’s transactions occurred in a range of $1,643 to $2,782 per pound . Looking at forward pricing trends the analysts had this to say:

[O]utdoor flower is being liquidated at higher prices now than it was in the fall and winter.  During the fall harvest, outdoor growers are price setters.  After the fall harvest months, the proportion of outdoor grown flower coming to market decreases until supplies are exhausted ahead of the next crop.  During this period, the market clearing price is largely set by indoor growers, while outdoor growers seek to capture higher prices.  As we are witnessing now, outdoor flower is expected to command higher prices until the fall approaches and markets are flooded with new, lower-priced supplies.

Implied forward prices are expected to reach their peak in August at $2,160 a pound (down $20 from the prior estimate) before dropping to $1,650 in November.

Our price check at MJCharts.com indicates prices range from $27.19 a gram to a low of $3 in the all-cities index. The all-cities index price is $12.32 per gram, up 2 cents compared with the prior week. The overall average price for a gram of marijuana (all strains) in Colorado is currently $11.45 ranging from a high of $25 a gram to a low of $3.50. In California the price is $15.40 per gram, ranging from $27.19 down to $5 per gram; in Michigan the average price is $14.13 per gram in a range of $25 to $5; in Oregon the average is $10.81 per gram in a range of $25 to $3; and in Washington the average is $10.63 per gram, ranging from a high of $21 to a low of $4.00.