Marijuana Price Jumps 5% to $1,687 per Pound

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For the week ended Friday, September 30, the spot price index for a pound of cannabis increased 4.6% from $1,612 in the prior week to $1,687. According to the analysts at Cannabis Benchmarks, the simple average price for a gram dipped from $4.25 to $4.13.

The futures price for the near month (October) was unchanged at $1,525 per pound. For the month of November, the forward price remained at $1,500 a pound. The six-month forward price (March) also remained unchanged at $1,750.

About two-thirds of the past week’s transactions occurred in a range of $1,356 to $2,393 per pound.

This week the analysts commented on the difference between sellers and buyers on how to assess product quality:

Growers state that buyers frequently prioritize THC percentages as the primary determination of a lot’s quality (and therefore its price, of course). Some producers even described experiences in which buyers will not even consider purchasing lots that test below 20% THC. This attitude in buyers is understandable, as retail customers, particularly in adult-use markets, will often base their purchasing decisions on THC test results.

However, producers note that they themselves sometimes find product that tests lower in terms of THC percentage (generally between 15% and 19%) can, when consumed, result in superior effects than product boasting astronomically high THC levels. Such anecdotal observations are consistent with the theory of the Entourage Effect, which posits that the overall experience that results from consuming cannabis is a result of synergistic actions between the dozens of cannabinoids, terpenoids, and other chemical compounds found in the plant.

Implied forward prices are expected to reach their six-month peak in March at $1,750 a pound. The six-month low is expected to be $1,500 in November.

Our price check at MJCharts indicates prices range from $27.19 a gram to a low of $3.50 in the all-cities index. The all-cities index price is $12.43 per gram, up two cents compared with the prior week. The overall average price for a gram of marijuana (all strains) in Colorado is currently $11.42, ranging from a high of $25.00 a gram to a low of $3.50. In California the average price is $15.06 per gram, ranging from $27.19 down to $5.00 per gram, while in Michigan the average price is $13.94 per gram in a range of $25.00 to $5.00. In Oregon the average is $11.37 per gram in a range of $20.00 to $4.00, and in Washington the average is $10.59 per gram, ranging from a high of $21.00 to a low of $4.00.