Companies and Brands

Marijuana Price Drops 3% to $1,591 a Pound

Paul Ausick

Published: February 4, 2017 8:35 am

Last Updated: January 12, 2020 3:10 pm

For the week ended Friday, February 3, 2017, the spot price index for a pound of cannabis decreased by 3.1% from $1,641 in the prior week to $1,591. According to the analysts at Cannabis Benchmarks, the simple average price for a gram decreased from $4.22 to $4.06.

The futures price for the near month (March) remained unchanged at $1,650. For the month of April, the forward price remained unchanged at $1,700. The six-month forward price (August) entered the chart at $1,575 a pound.

About two-thirds of the past week’s transactions occurred in a range of $1,251 to $2,428 per pound.

This week the analysts commented on the current downward trend in pricing:

While virtually all commodities experience boom-bust cycles, the generally declining prices that we have observed, measured and documented over the past year do not yet appear to have bottomed-out to the point of bust (meaning significant bankruptcies, recapitalizations and widespread industry consolidation).  Nevertheless, our analysis, and reports from growers and sellers in the field, indicate that more supply is coming online and that the overall price curve experienced last year – with prices peaking in May and declining to a bottom in November – is the current expectation of those engaging in forward arrangements; albeit with the entire Forward Curve shifting down roughly $240 per pound over the six-month forward period.

Indoor flower prices ranged from $900 to $3,500 per pound, with the median price at $1,955. Greenhouse flower prices ranged from $1,050 to $3,000 per pound, and the median price was $1,625. Outdoor flower prices ranged from $750 to $2,600 per pound; the median price was $1,300.

For a wide-angle look at the cannabis industry, see our report on the largest companies in the marijuana business.

Our price check at MJCharts indicates prices range from $25.00 a gram to a low of $4.00 in the all-cities index. The all-cities index price is $11.10 per gram, down 11 cents compared with the prior week. The overall average price for a gram of marijuana (all strains) in Colorado is currently $12.17, ranging from a high of $15.00 a gram to a low of $8.00. In California the average price is $13.34 per gram, ranging from $17.00 to $10.00 per gram, while in Michigan the average price is $15.24 per gram in a range of $20.00 to $10.00. And in Oregon the average is $11.00 per gram in a range of $25.00 to $4.00.

Data for Washington state were not available again this week. Three weeks ago, the average in Washington was $10.61 per gram, ranging from a high of $17.00 to a low of $4.00.