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Marijuana Price Dips to $1,648 a Pound

Paul Ausick

For the week ended Friday, April 28, 2017, the spot price index for a pound of cannabis slipped 0.5% from $1,655 a pound to $1,648. According to the analysts at Cannabis Benchmarks, the simple average price for a gram rose two cents to $3.96.

The futures price for the near-month (May) slipped from $1,730 to $1,715. For the month of June, the forward price also dropped from $1,725 to $1,700. The six-month forward price (October) was unchanged at $1,460.

About two-thirds of the past week's transactions occurred in a range of $1,045 to $2,551 per pound.

The Cannabis Benchmark analysts reviewed wholesale marijuana pricing over the two years they have been tracking it:

In 2015, the U.S. Spot Index reached a peak of $2,133 in September, before prices declined precipitously with the fall harvest.  The average price during the fourth quarter of 2015 was $1,852 per pound.  One year later, increased supplies from new and expanded capacity, as well as improved cultivation techniques and better supply chain management, drove prices down $365 per pound, or 19.7%, to $1,487 per pound during the fourth quarter of 2016.

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During 2016, the U.S. Spot Index peaked at $2,096 in May, reached a low of $1,386 in November, and averaged $1,789 for the year.  In the first quarter of 2017, changing supply-demand fundamentals continued to drive prices lower.  Prices averaged $1,613 during Q1, declining $340 per pound, or 17.4%, from the $1,953 per pound average witnessed during the first quarter of 2016.

Indoor flower prices ranged from $800 to $6,200 per pound, with a median price of $2,000. Greenhouse flower prices ranged from $900 to $3,000 per pound, and the median price was $1,305. Outdoor flower prices ranged from $700 to $2,000 per pound; the median price was $1,200.

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

According to consumer data reported to PriceOfWeed.com, the national average price in the United States for high-quality cannabis is $320.66 per ounce. Medium-quality marijuana averages $280.55 per ounce. In Colorado, high-quality weed sells for $242.42 an ounce and medium-quality sells for $199.85. The price for high-quality marijuana is $248.55 in California, while medium-quality sells for $200.79 per ounce. Oregon prices range from $210.70 for high-quality cannabis to $186.94 for medium-quality, and in Arizona, high-quality marijuana sells for $297.72 per ounce while medium-quality goes for 231.45.

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