For the week ended Friday, July 29, the spot price index for a pound of cannabis decreased 2.4% from $1,705 in the prior week to $1,664. According to the analysts at Cannabis Benchmarks, the simple average price for a gram remained unchanged at $4.36.

The futures price for the near month (August) fell $75 to $1,625 per pound. For the month of September, the forward price remained unchanged at $1,600 a pound. The six-month forward price (January) also remained unchanged at $1,775.

About two-thirds of the past week’s transactions occurred in a range of $1,465 to $2,494 per pound. Looking at forward pricing trends the analysts had this to say:

With the increased focus on pesticide issues nationally, and the impending implementation of medical marijuana testing in Colorado, market participants were anticipating summer price spikes resulting from significant amounts of tainted supplies being quarantined and/or destroyed. Additional upward pressure on prices was expected as the conditions for a perfect storm were forming, specifically that the testing-related reductions in supply could potentially coincide with both the higher prices that typically accompany higher temperatures and the depletion of inventoried supplies from the prior fall harvest. … [However,] implementation of testing regulations has been delayed in many markets as regulators endeavor to ensure testing compliance frameworks that are both pragmatic and effective, temporarily postponing compliance-related costs. The deferment of these expenses has been compounded by unexpectedly abundant supplies from last year’s harvest continuing to flood markets, as well as more growers producing more harvests per year and with higher yields.

Implied forward prices are expected to reach their six-month peak in January at $1,775 a pound (down $50 from the prior estimate). The six-month low is expected to be $1,525 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 $12.34 per gram, down 15 cents compared with the prior week. The overall average price for a gram of marijuana (all strains) in Colorado is currently $11.42, ranging from a high of $25 a gram to a low of $3.50. In California the price is $15.31 per gram, ranging from $27.19 down to $4.21 per gram, while in Michigan the average price is $14.25 per gram in a range of $25 to $5. In Oregon the average is $10.93 per gram in a range of $20 to $4, and in Washington the average is $10.61 per gram, ranging from a high of $21 to a low of $4.

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