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Marijuana Price Jumps 5% to $1,655 a Pound

Paul Ausick

For the week ended Friday, March 17, 2017, the spot price index for a pound of cannabis increased by 5.1% from $1,574 in the prior week to $1,655. According to the analysts at Cannabis Benchmarks, the simple average price for a gram increased from $3.85 to $3.96.

The futures price for the near month (April) remained unchanged at $1,700. For the month of May, the forward price remained unchanged at $1,750. The six-month forward price (September) was also unchanged $1,535 a pound.

About two-thirds of the past week's transactions occurred in a range of $1,103 to $2,487 per pound.

This week the analysts commented on the medical marijuana market in Nevada and how the state is doing in creating the recreational marijuana program that Nevada voters approved last year:

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A cursory examination of Las Vegas tourism statistics also suggests that demand from out-of-state visitors with valid medical cannabis cards likely held fairly steady month-to-month. According to figures from the Las Vegas Convention and Visitors authority, over 42 million tourists visited the city last year. Monthly visitor volume ranged from a low of about 3.27 million people in December to a high of roughly 3.82 million in July; in each month between March and October, monthly visitor volume topped 3.5 million. … [O]perators in the state are optimistic that an early recreational sales program will be in place by summer, which would allow existing medical businesses to sell product to adult consumers over 21. The details of the program are still under construction, but clearly such an allowance would greatly expand the limited customer pool currently patronizing the state's dispensaries.

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Indoor flower prices ranged from $899 to $5,000 per pound, with the median price at $1,895. Greenhouse flower prices ranged from $700 to $3,300 per pound, while the median price was $1,305. Outdoor flower prices ranged from $800 to $2,000 per pound; the median price was $1,500.

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 $22.00 a gram to a low of $3.00 in the all-cities index. The all-cities index price is $11.13 per gram, down seven cents compared with the prior week. The overall average price for a gram of marijuana (all strains) in Colorado is currently $11.96, ranging from a high of $15.00 a gram to a low of $8.00. In California the average price is $14.79 per gram, ranging from $22.00 down to $11.00 per gram, and in Michigan the average price is $15.00 per gram in a range of $20.00 to $10.00. In Oregon the average is $11.04 per gram in a range of $21.00 to $3.00. Data for Washington state were not available again this week.

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