The issue is that significant amounts of inventory from 2020’s outdoor harvest remains unsold. Reports from market participants told of outdoor product fetching as low as $200 per pound, while trim was seen trading down at $50 per pound. Disruption hits California’s cannabis wholesale marketīeginning in earnest in August, northern California growers noted a large inventory overhang, with price pressure most marked on outdoor-grown flower. However, after the state Spot prices of California and Oregon reached year-to-date peaks in June and July, respectively, the bottoms began to fall out of each state’s wholesale market. Through the first half of this year, prices were relatively stable, while exhibiting a slow but steady rise. Prices then softened after 2020’s autumn outdoor harvest, as they typically do each year, but returned to a gradual uptrend in Q2 2021. Spot Index – the aggregated national price for a pound of cannabis flower based on assessments from 18 state markets – ascended to heights not seen in several years. ![]() Indeed, by October 2020 Cannabis Benchmarks’ U.S. In response to the unexpected and significantly elevated demand, wholesale cannabis flower prices climbed as well. Recent cannabis wholesale price trendsĪs reported by Cannabis Benchmarks throughout 2020, legal cannabis sales in nearly every state surged to record levels during the late spring and summer, as the coronavirus arrived in the U.S. ![]() All this is taking place against the backdrop of the continuing Covid-19 pandemic, which unexpectedly disrupted historical sales trends last year, adding even more uncertainty for businesses. Off the West Coast, Oklahoma’s medical cannabis market has exhibited significant price volatility this year. Specifically, wholesale cannabis flower prices in California and Oregon have dropped precipitously in the current quarter due to a combination of factors discussed in more detail below. Recent developments in wholesale cannabis flower prices in several key state markets have illustrated the necessity for businesses to have a plan to mitigate the risk of price volatility. ![]() Our recent series of articles and videos educating cannabis operators on the basics and uses of Cannabis Price Risk Management, powered by independent cannabis and hemp Price Reporting Agency Cannabis Benchmarks, could not have come at a better time.
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