According to Cannabis Benchmarks:
U.S. Cannabis Spot Index down 1.2% to $1,633 per pound.
The simple average (non-volume weighted) price increased $39 to $1,941 per pound, with 68% of transactions (one standard deviation) in the $1,367 to $2,516 per pound range. The average deal size decreased 9.6% to 8.3 pounds this week, from 9.1 pounds last week. In grams, the Spot price was $3.60, and the simple average price was $4.28.
This week’s Transaction Stats illustrate that, while some outdoor farmers are likely in the process of bringing in their crops from the field, the product has not yet come to market.
In the coming weeks:
Forward Curve remains unchanged as buyers & sellers await fall supply. At $1,525 per pound, the October Forward represents a discount of 6.6% relative to the U.S. Spot Index.
This week’s distribution of forwards was 5% outdoor, 19% greenhouse and 76% indoor. The average forward deal was 14 pounds.
Forwards for outdoor grown flower had the lowest prices and ranged from $700 to $1,200 per pound, with an average price of $933 per pound for the next delivery. One producer of middle-shelf sungrown flower in California – with forwards priced at $800 per pound for 100-pound lots – expressed concern over his ability to move remaining supplies from last year’s harvest. Other outdoor cultivators with supplies from last year have arrangements for deliveries at $700 per pound in November. More than one outdoor grower commented on a desire to partner with an extractor/processor in the hope of maintaining margins on remaining inventory.
Forward arrangements for weekly and bi-weekly deliveries ranged from 1 to 15 pounds, while monthly deliveries ranged from 1 to 100 pounds. 24% of monthly deliveries were for 25 pounds or more.