For the week ended Friday, May 27, the spot price index for a pound of cannabis increased 3.4% from $2,027 in the prior week to $2,096. The simple average price for a gram rose from $4.78 to $5.00.
The futures price for the near month (June) remained unchanged at $2,125. For the month of July, the forward price remained unchanged at $2,150 a pound. The six-month forward price for November remained unchanged as well, at $1,650.
About two-thirds of the past week’s transactions occurred in a range of $1,685 to $2,851 per pound, according to the analysts at Cannabis Benchmarks. Citing an article from a Willamette, Ore., newspaper, the analysts looked at real-estate speculation for indoor growing facilities:
An article in Willamette Week documents specific cases of real estate speculation in Portland, Oregon’s now-tight warehouse market, funded largely by a California investor. This is on its face unremarkable; we have reported on numerous occasions that speculators have been buying up land and buildings in areas that permit cultivation and in which new markets are set to develop. … Cities and regions in California that have regulations in place allowing commercial cultivation are currently experiencing such activity in earnest, while Oregon’s rush largely took place last year ahead of this year’s application period for adult-use licenses. Even in slow-to-develop Massachusetts, a company billing itself as a leader in “cultivation and processing infrastructure” is working on developing a 1 million square foot site that will be split into different units and leased to producers. … Private groups and individuals have employed similar models in order to participate in, and hopefully profit from, the cannabis industry while also keeping it at arm’s length.
The past week’s forward deals were reported from California, Colorado, Oregon, Washington, Nevada, Arizona, Vermont, Rhode Island and Maine. Of the week’s reported forwards, 61% were for monthly deliveries and ranged from two to 100 pounds. Weekly or biweekly delivery deals accounted for 39% of the reported forwards and ranged from five to 20 pounds. The average forward deal was for 15.8 pounds.
Implied forward prices are expected to reach their peak in August at $2,250 a pound, before dropping to $1,650 in November.
Our price check at MJCharts.com indicates prices range from $25 a gram to a low of $1 in the all-cities index. The all-cities index price is $12.20 per gram, up four cents compared with the prior week. The overall average price for a gram of marijuana (all strains) in Colorado is currently $11.44, ranging from a high of $25 a gram to a low of $1. In California the price is $15.29 per gram, ranging from $25 down to $5 per gram, while in Michigan the average price is $14.07 per gram in a range of $25 to $5. In Oregon the average is $10.67 per gram in a range of $25 to $2, and in Washington the average is $10.71 per gram, ranging from a high of $21 to a low of $1.