For the week ended Friday, October 30, the spot price index for a pound of cannabis increased by $51 (2.7%) from $1,790 in the prior week to $1,839. The simple (non-volume weighted) average price for a gram increased by 22 cents to $4.58.
The futures price for November rose by $40 a pound to $1,730, and the December forward price rose by $75 to $1,615. For the month of January 2016, the forward price rose by $115 to $1,665 a pound. The six-month forward price for April 2016 rose by $190 to $1,990 a pound.
About two-thirds of the past week’s transactions occurred in a range of $1,537 to $2,619 per pound, according to the analysts at Cannabis Benchmarks. The volume-weighted average price in Colorado rose 2%, from $1,878 on October 16 to $1,915 a pound last week.
The Federal Reserve filed a document in a lawsuit brought against it by the Fourth Corner Credit Union, which is seeking master account status from the Fed in order to serve the Colorado cannabis market. The Fed wants the suit dismissed because awarding a master account to the credit union would be a violation of federal law.
The volume-weighted average price in California last week was $1,525 per pound, flat compared with a price of $1,528 in the previous week.
According to Cannabis Benchmarks, the volume-weighted average price of cannabis in Oregon rose about 1.3% last week, from $1,957 to $1,984 a pound. In Washington prices rose 6%, from $1,443 a pound to $1,530.
In the futures market, Cannabis Benchmarks noted:
The temporary equilibrium witnessed over the past few weeks—as fall harvest supplies momentarily caught up with demand—appears to have come to an abrupt end as the harvest season nears its close. … While local and regional markets will differ, it is now generally a seller’s market nationally. Our analysis suggest that sales in legal retail markets will more than double in 2015, from $2.7 billion to more than $5 billion, perhaps reaching $6 billion. Nevada and other new markets cannot produce enough cannabis to satisfy demand. Despite new grow operations continually breaking ground across the country, new production is not scaling up as rapidly as legal demand is currently increasing.
Our price check at MJCharts.com indicates prices range from nearly $25 a gram to a low of $5 in the all-cities index. The overall average price for a gram of marijuana (all strains) in Colorado is currently $11.45, ranging from a high of $12 a gram to a low of $8. In California the price is $13.81 per gram, ranging from $25 down to $6 per gram, while in Michigan the average is $17.14 per gram in a range of $20 to $10. In Oregon the average is $10.57 per gram in a range of $20 to $5, and in Washington the average is $10.81 per gram, ranging from a high of $15 to a low of $6.