For the week ended Friday, August 5, the spot price index for a pound of cannabis decreased 3.2% from $1,664 in the prior week to $1,610. According to the analysts at Cannabis Benchmarks, the simple average price for a gram also dropped, from $4.36 to $4.15.
The futures price for the near month (September) fell $50 to $1,575 per pound. For the month of October, the forward price came in at $1,550 a pound. The six-month forward price (January) fell $25 to $1,750.
About two-thirds of the past week’s transactions occurred in a range of $1,351 to $2,417 per pound. Looking at possibility that marijuana would be rescheduled as a Class II drug, the analysts had this say:
With the first half of 2016 in our collective rear view mirrors, a hoped-for rescheduling decision from the DEA has not yet arrived. A new report from the Denver Post released this week quotes DEA officials as stating that no definitive timeline for the rescheduling decision can be given, although an unverified claim from a Denver lawyer stated that the decision would not even come this year. This leaves the industry subject to onerous federal tax burdens under section 280E of the Internal Revenue Code, as well as maintaining the current banking situation, discussed in the Spot Index commentary, for the foreseeable future. We discuss in greater detail the effects of the federal government’s stance on cannabis businesses in our Mid-Year Review & Outlook, available for free download.
Implied forward prices are now expected to reach their six-month peak in February at $1,750 a pound (down $25 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 $12.36 per gram, up two cents compared with the prior week. The overall average price for a gram of marijuana (all strains) in Colorado currently $11.37 ranges from a high of $25.00 a gram to a low of $3.50. In California the price is $15.30 per gram, ranging from $27.19 down to $4.21 per gram, while in Michigan the average price is $14.27 per gram in a range of $25.00 to $5.00. In Oregon the average is $11.02 per gram in a range of $20.00 to $4.00, and in Washington the average is $10.60 per gram, ranging from a high of $21.00 to a low of $4.00.
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