Marijuana Price Tumbles 9% to Year-to-Date Low of $1,466

For the week ended Friday, October 21, the spot price index for a pound of cannabis decreased 8.9% from $1,609 in the prior week to $1,466. According to the analysts at Cannabis Benchmarks, the simple average price for a gram dropped from $3.95 to $3.89.

The futures price for the near month (November) fell $50 to $1,450. For the month of December, the forward price fell $25 $1,600 a pound. The six-month forward price (April) remained unchanged at $1,815 a pound.

About two-thirds of the past week’s transactions occurred in a range of $1,293 to $2,237 per pound.

This week the analysts commented on forward pricing:

The US Spot Index fell nearly 9% this week, settling at a new year-to-date low of $1,466 per pound, 5% lower than the previous one of $1,540 established two weeks ago. High-volume deals for relatively low-priced outdoor product, particularly in California, drove down the national volume-weighted average. The observed average deal size was up nearly 25% week-over-week, due largely to an almost 60% jump in the size of deals for outdoor flower compared to last week. … [T]he U.S. Spot Index averaged $1,801 and $1,927 per pound for the months of November and December 2015, respectively; thus, for the remainder of the year, the market is anticipating prices to be about $325 to $350 per pound lower than last year.

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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 $12.46 per gram, up three cents compared with the prior week. The overall average price for a gram of marijuana (all strains) in Colorado is currently $11.40 ranging from a high of $25.00 a gram to a low of $3.50. In California the average price is $15.02 per gram, ranging from $27.19 down to $4.20 per gram, while in Michigan the average price is $14.01 per gram in a range of $25.00 to $5.00. In Oregon the average is $11.38 per gram in a range of $20.00 to $4.00, and in Washington the average is $10.59 per gram, ranging from a high of $21.00 to a low of $4.00.

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