For the week ended Friday, March 10, 2017, the spot price index for a pound of cannabis increased by 1.1% from $1,556 in the prior week to $1,574. According to the analysts at Cannabis Benchmarks, the simple average price for a gram decreased from $3.86 to $3.85.
The futures price for the near-month (April) remained unchanged at $1,700. For the month of May, the forward price remained unchanged at $1,750. The six-month forward price (September) was also unchanged $1,535 a pound.
About two-thirds of the past week’s transactions occurred in a range of $1,060 to $2,433 per pound.
This week the analysts commented on the recent passage of Measure M in the city of Los Angeles and what it means for the regulation of the cannabis industry in that jurisdiction:
Measure M gives the Los Angeles City Council broad authority to develop regulations to govern commercial cannabis activity and specifies that rules must be developed by September 30th of this year. Most importantly, Measure M will provide local licensing for cannabis businesses in Los Angeles, a prerequisite for state licensing and something not afforded by Proposition D, the city’s previous law that provided limited immunity from prosecution to only 135 longstanding dispensaries. Measure M also sets tax rates on cannabis businesses, including levies of 10% and 5% on the gross receipts of retail sales of adult-use and medical cannabis, respectively. The measure also specifies a 2% tax on the gross receipts of cultivators and product manufacturers.
Indoor flower prices ranged from $899 to $5,000 per pound, with a median price of $1,850. Greenhouse flower prices ranged from $700 to $3,300 per pound, and the median price was $1,305. Outdoor flower prices ranged from $800 to $1,900 per pound; the median price was $1,400.
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 $21.00 a gram to a low of $3.00 in the all-cities index. The all-cities index price is $11.20 per gram, down two cents compared with the prior week. The overall average price for a gram of marijuana (all strains) in Colorado is currently $12.01, ranging from a high of $15.00 a gram to a low of $8.00. In California the average price is $14.28 per gram, ranging from $17.00 down to $11.00 per gram, while in Michigan the average price is $15.68 per gram in a range of $20.00 to $10.00. In Oregon the average is $11.16 per gram in a range of $21.00 to $3.00. Data for Washington state were not available again this week.