Marijuana Price Rises Nearly 4% to $1,635 a Pound
For the week ended Friday, June 30, 2017, the spot price index for a pound of cannabis rose 3.6% to $1,635. According to the analysts at Cannabis Benchmarks, the simple average price for a gram rose from $3.99 to $4.10.
The futures price for the near month (July) remained unchanged at $1,525. For the month of August, the forward price was unchanged at $1,510. The six-month forward price (December) was also unchanged at $1,465.
About two-thirds of the past week’s transactions occurred in a range of $1,188 to $2,527 per pound.
The Cannabis Benchmark analysts commented on recreational sales of cannabis that begin today:
While July 1st is being celebrated as a major milestone toward the legalization of the commercial production and sale of cannabis in Nevada, complications lurk on the horizon. As we have discussed in previous reports, the uncertainty as to whether the early sales program would even begin on time is due to a dispute between alcohol distributors and the state. The former were granted exclusive distribution rights for the first 18 months of adult-use sales in the ballot initiative that legalized a recreational cannabis market, approved last November. The state moved to issue distribution licenses to other parties, resulting in a lawsuit brought by an association of alcohol distributors; a judge decided in favor of the alcohol distributors and imposed an injunction preventing the state from granting distributor licenses to other entities.
Consequently, the early adult-use sales program is moving forward as scheduled, but a statement from the Nevada Department of Taxation (NDOT), which is overseeing adult-use cannabis in the state, tells licensees that they may only sell what they have currently in inventory; resupplying must take place through a licensed distributor. Reports from several outlets have noted that it is uncertain when distributors will be licensed.
Indoor flower prices ranged from $999 to $6,250 per pound, with a median price of $2,100. Greenhouse flower prices ranged from $850 to $3,147 per pound, while the median price was $1,305. And outdoor flower prices ranged from $700 to $1,800 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 that prices range from $20.00 a gram to a low of $3.00 in the all-cities index. The all-cities index price is $11.12 per gram, down a penny compared with the prior week. The overall average price for a gram of marijuana (all strains) in Arizona is currently $8.89, ranging from a high of $15.00 a gram to a low of $6.00. In California the average price is $13.81 per gram, ranging from $15.00 down to $11.00 per gram. And in Oregon the average is $11.13 per gram in a range of $20.00 to $3.00.