Marijuana Price Nears $2,200

For the week ended Friday, May 13, the spot price index for a pound of cannabis increased 2.5% from $2,030 in the prior week to $2,081. The simple average price for a gram rose from $4.77 to $4.85.

The futures price for the near month (June) rose from $2,075 to $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 $1,610 to $2,787 per pound, according to the analysts at Cannabis Benchmarks. The analysts also commented on the forward price curve:

The market outlook for fall prices remains bearish. In California, illegal grows are still running and likely expanding as they try to fit in another year or two prior to statewide regulation. The result will be large volumes of cheap product in the fall, alongside those growers that have increased expenses trying to legitimize in accordance with new rules. Newcomers now building grows in municipalities willing to permit them may add more supply prior to end of year, but not many are expected to come online in the immediate future, relative to the total number of cultivators currently operational in the state. … In Colorado, testing of medical marijuana written in rule to start in July probably will not happen on schedule.  The pesticide testing program being developed is not yet off the ground and the implementation schedule is slipping.

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 $11.18 per gram, up 10 cents compared with the prior week. The overall average price for a gram of marijuana (all strains) in Colorado is currently $11.48, ranging from a high of $20 a gram to a low of $5. In California the price is $13.90 per gram, ranging from $25 down to $1 (stems) per gram, while in Michigan the average price is $14.40 per gram in a range of $25 to $10. In Oregon the average is $10.68 per gram in a range of $25 to $2, and in Washington the average is $10.45 per gram, ranging from a high of $20 to a low of $6.