Marijuana Price Jumps 4.5% to $1,609 per Pound
For the week ended Friday, October 14, the spot price index for a pound of cannabis increased 4.5% from $1,540 in the prior week to $1,609. According to the analysts at Cannabis Benchmarks, the simple average price for a gram dropped from $4.19 to $3.95.
The futures price for the near month (November) remained unchanged at $1,500. For the month of December, the forward price remained at $1,625 a pound. The six-month forward price (April) also remained unchanged at $1,815 a pound.
About two-thirds of the past week’s transactions occurred in a range of $1,313 to $2,274 per pound.
This week the analysts commented on forward pricing:
Despite the first small wave of the outdoor harvest beginning to reach market, the proportion of the total observed volume made up by such flower shrunk by 7% week-on-week, while the greenhouse production accounted for nearly half of all of the observed weight moved this week. … [T]his week’s uptick in the U.S. Spot Index is expected to be a short-term phenomenon as higher quality outdoor flower commands a higher price, in general, than any supplies that might remain on the market from last year’s outdoor harvest. However, this uptick signals the beginning of a supply surge that is anticipated to drive prices to their seasonal bottom over the coming weeks.
Implied forward prices are expected to reach their six-month peak in April at $1,815 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, unchanged compared with the prior week. The overall average price for a gram of marijuana (all strains) in Colorado is currently $11.39, ranging from a high of $25.00 a gram to a low of $3.50. In California the average price is $15.03 per gram, ranging from $27.19 down to $4.00 per gram, and in Michigan the average price is $14.05 per gram in a range of $25.00 to $5.00. In Oregon the average is $11.34 per gram in a range of $20 to $4.00, while in Washington the average is $10.59 per gram, ranging from a high of $21.00 to a low of $4.00.