Companies and Brands
Marijuana Price Drops 3% to $1,591 a Pound
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For the week ended Friday, February 3, 2017, the spot price index for a pound of cannabis decreased by 3.1% from $1,641 in the prior week to $1,591. According to the analysts at Cannabis Benchmarks, the simple average price for a gram decreased from $4.22 to $4.06.
The futures price for the near month (March) remained unchanged at $1,650. For the month of April, the forward price remained unchanged at $1,700. The six-month forward price (August) entered the chart at $1,575 a pound.
About two-thirds of the past week’s transactions occurred in a range of $1,251 to $2,428 per pound.
This week the analysts commented on the current downward trend in pricing:
While virtually all commodities experience boom-bust cycles, the generally declining prices that we have observed, measured and documented over the past year do not yet appear to have bottomed-out to the point of bust (meaning significant bankruptcies, recapitalizations and widespread industry consolidation). Â Nevertheless, our analysis, and reports from growers and sellers in the field, indicate that more supply is coming online and that the overall price curve experienced last year – with prices peaking in May and declining to a bottom in November – is the current expectation of those engaging in forward arrangements; albeit with the entire Forward Curve shifting down roughly $240 per pound over the six-month forward period.
Indoor flower prices ranged from $900 to $3,500 per pound, with the median price at $1,955. Greenhouse flower prices ranged from $1,050 to $3,000 per pound, and the median price was $1,625. Outdoor flower prices ranged from $750 to $2,600 per pound; the median price was $1,300.
For a wide-angle look at the cannabis industry, see our report on the largest companies in the marijuana business.
Our price check at MJCharts indicates prices range from $25.00 a gram to a low of $4.00 in the all-cities index. The all-cities index price is $11.10 per gram, down 11 cents compared with the prior week. The overall average price for a gram of marijuana (all strains) in Colorado is currently $12.17, ranging from a high of $15.00 a gram to a low of $8.00. In California the average price is $13.34 per gram, ranging from $17.00 to $10.00 per gram, while in Michigan the average price is $15.24 per gram in a range of $20.00 to $10.00. And in Oregon the average is $11.00 per gram in a range of $25.00 to $4.00.
Data for Washington state were not available again this week. Three weeks ago, the average in Washington was $10.61 per gram, ranging from a high of $17.00 to a low of $4.00.
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