Cannabis Benchmarks’ Spot Index Shows Jump in Wholesale Prices
Cannabis Benchmarks has released the U.S. Cannabis Spot Index for October 2020. It shows the average wholesale price of cannabis has reached its highest level in three years.
The simple average (non-volume weighted) price increased $63 to $1,863 per pound, with 68% of transactions (one standard deviation) in the $1,083 to $2,644 per pound range. The average reported deal size increased to 2.2 pounds. In grams, the Spot price was $3.63 and the simple average price was $4.11.
The cause was a pandemic-led rise in demand coupled with plunging supply. The fires on the West Coast played a role in that.
Have we reached the peak? There are signs of that, but the report offers a cautionary note.
As record sales have strained supplies even in mature and previously well-supplied markets, new regulatory developments could add more costs for businesses, potentially applying further upward pressure on wholesale prices.