Marijuana Price Slips 2.6%

For the week ended Friday, May 20, the spot price index for a pound of cannabis decreased 2.6% from $2,081 in the prior week to $2,027. The simple average price for a gram fell from $4.85 to $4.78.

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 $1,570 to $2,766 per pound, according to the analysts at Cannabis Benchmarks. The analysts also commented on the forward price curve:

This week’s forward volume represented 9% of the total number of observed spot and forward transactions, up from 6% last week. 88% of the forwards had durations of at least three months.  80% had durations of at least 4 months.  48% of the forwards had durations of five or more months.

This week’s forward deals were reported from California, Colorado, Oregon, and Washington.  52% of this week’s reported forwards were for monthly deliveries and ranged from 2.5 to 200 pounds.  48% of this week’s reported forwards were for weekly or biweekly deliveries and ranged from 5 to 25 pounds.  The average forward deal was for 24.4 pounds.

Implied forward prices are expected to reach their peak in August at $2,250 a pound before dropping to $1,650 in November.

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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 $12.16 per gram, up 98 cents compared with the prior week. The overall average price for a gram of marijuana (all strains) in Colorado is currently $11.62 ranging from a high of $25 a gram to a low of $1. In California the price is $14.92 per gram, ranging from $25 down to $5 per gram, while in Michigan the average price is $14.04 per gram in a range of $25 to $5. In Oregon the average is $10.66 per gram in a range of $25 to $2, and in Washington the average is $10.69 per gram, ranging from a high of $21 to a low of $1.