At $2,000 USD per pound, marijuana prices in the united states have spiked 6% at a time of year when they’re usually at an all-time low.
Cannabis harvest season ends around early December, and the supply flooding the market typically brings in a dip in the price index for marijuana across the country.
But according to web sources like 24/7 Wallstreet, spot and forward prices for marijuana supplies have not yet experienced the drop in prices that normally comes at this time of year as the annual harvest is brought in.
For the week ended Friday, December 18, the spot price index for a pound of cannabis increased by $109 (about 6%) from $1,932 in the prior week to $2,041.
Market analysts at Cannabis Benchmarks pointed to a number of factors that could be responsible for the unusual price-hike. Although some deviation is the norm,
“Buyers are becoming more conscientious about their purchases as they attempt to balance the need for inventory with concerns about the impact of new tax regimes, pesticide-related product recalls, and increased competition from both new dispensaries and more consumers becoming home growers.”
Cannabis Benchmarks also noted how the recently passed federal spending bill, which included a provision banning the prohibition on medical marijuana, is affecting the price of weed.
“The provisions of the Rohrabacher-Farr Amendment included with the 2015 budget bill were retained. These prevent the U.S. Department of Justice from using any funds “to prosecute those following state medical cannabis laws.”
About two-thirds of the past week’s transactions occurred in a range of $1,688 to $2,702 per pound, according to the analysts at Cannabis Benchmarks. The volume-weighted average price in Colorado remained flat at $1,955 a pound last week.
The volume-weighted average price in California last week jumped to $1,857 per pound, up 5% from the prior week’s price of $1,760. The Colorado-California price gap dropped by $98 per pound (or $0.22 per gram).
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Prices range from $25 a gram to a low of $3 in the all-cities index. The overall average price for a gram of marijuana (all strains) in Colorado is currently $11.29, ranging from a high of $12 a gram to a low of $8. In California the price is $14.35 per gram.