U.S. Cannabis Wholesale Prices Stabilizing, Up Since 2022

July 19, 2023 · Green Market Report

The U.S. marijuana wholesale market has apparently reached a bit of stabilization this year, after a precipitous drop in 2022, and has even rebounded somewhat since last year, according to a recent report from Cannabis Benchmarks.

For the week that ended July 14, wholesale prices decreased by 3.1% to $1,020, according to the report, but that’s still an increase from December, when wholesale prices had dropped to $955, Benchmarks reported at the time.

The spot index report found that wholesale prices have gone down “in four of the last five weeks after staging a successful rally from March until the first week in June.”

“The rally fizzled as legacy states – specifically California, Oregon, and Colorado – started selling off in early to mid-June. Of the legacy states, only Washington State’s spot price is trading sideways as opposed to lower,” Benchmarks reported.

For indoor-grown flower, wholesale prices averaged $1,327 per pound; for greenhouse-grown cannabis, it was $718, and for outdoor-grown marijuana it was $479.

Looking forward, Benchmarks expects a wholesale price surge in August, with average pounds of flower shooting up to $1,075, a 5.4% increase, before slowly decreasing the rest of the year back to about $1,010 at the start of 2024.

The most expensive wholesale cannabis as of July can be found in Washington, D.C., where “there are only a handful of licensed producers, and where commercial adult use cannabis activity is still illegal,” according to the report. The least expensive is in Oregon, where the oversupplied market is reportedly a “wreck” and “in crisis.”

Falling wholesale prices are likely to only continue as a trend for the industry, Jonathan Rubin, the CEO of New Leaf Data Services, told Green Market Report in December. That’s because federal U.S. marijuana legalization – which could happen within the year, depending on how fast the Biden administration finishes its rescheduling review – will create a truly national marketplace which will depress prices even further. Then, prices will plummet again once a truly global cannabis trade comes online, said Rubin, who oversees the Cannabis Benchmarks report. (Full Story)

In category:Business
Next Post

Top Maryland Marijuana Regulator Explains How The State So Quickly Implemented Sales After Voters Approved Legalization

A top Maryland marijuana regulator says the state’s proactive approach to legalizing cannabis has allowed it to implement a system that effectively balances three key priorities: safety, access and equity. When the state’s legalization law took effect at the beginning…
Previous Post

Massachusetts Leads In New England's Cannabis Markets

Now that most of New England has legalized cannabis in some form or another, it’s worth looking at which states are the largest markets. While the smaller states with the least population are expected to be the ones with the…
Random Post

Wrigley wins lawsuit to keep Skittles name off marijuana products

The makers of the popular marijuana strain Zkittlez, which borrowed its name from a trademark owned by confectioner Wrigley, will discontinue the product line after bowing to legal pressure from the candy giant. In a settlement proposed on June 28, Mendocino County,…
Random Post

How Free Samples Trigger Curiosity and Drive Brand Loyalty

The allure of free samples is hard to resist. Who doesn’t love single-serve cups of chips and salsa at no charge? Hands down, the big dog of the free-sample world is Costco, which has reaped the scientifically proven benefits of…
Random Post

You Can Now Buy Weed Online in Colorado, A Trend for the Industry?

Colorado Governor Jared Polis passed a ground-breaking law allowing the sale of marijuana products online. After a month of consideration, this landmark decision ushers in a new era for the state's cannabis business. By embracing e-commerce, Colorado joins other progressive states…
Random Post

29 Former Federal Prosecutors Urge Biden Administration To Leave Marijuana In Schedule I

In a letter sent to the heads of the Department of Justice (DOJ) and Drug Enforcement Administration (DEA) this week, 29 former U.S. attorneys are urging the Biden administration to leave cannabis in Schedule I of the Controlled Substances Act…