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According to Cannabis Benchmarks’ 2017 Mid-Year Wholesale Market Report, wholesale prices for legal Marijuana per pound continue to drop in 2017.

Prices dropped 18.6 percent nationwide in the first half of the year, and Colorado in particular is dragging down the numbers with a whopping 40 percent decrease in wholesale prices per pound from the first half of 2017 in comparison to the first half of last year.

Despite that drop, analysts still categorize the stability of the market as “remarkable” considering last year’s price volatility and this year’s political uncertainty. In the first half of this year, for example, there has only been a $150 gap between the lowest and highest wholesale prices, while the first half of 2016 saw fluctuations of almost $300 from the lowest to highest price points. U.S. Spot prices for wholesale marijuana opened 2017 at $1,532 per pound, better than last year’s low of $1,386 per pound, which does leave room for some optimism. That aside, based on 2015 and 2016 analysis, it’s likely for prices to decline through November as seasonal fall harvest begins to appear on the market.

“We still do expect to see a seasonal price depression nationally that comes with the harvest,” said report author Adam Koh.

While a 40 percent drop is drastic, it does follow a national trend of price drops in all five states with legal adult-use markets. Though demand is strong in those states, Cannabis Benchmarks attributes the continued drop to a business boom that has created competition for market share and customers, resulting in “more than adequate” supply and businesses increase efficiency and cost-effective in order to stay competitive and keep their businesses going.

Since regulations and markets vary wildly in the adult-use states and with California soon to join their ranks, wholesale prices vary wildly and the market is expected to continue to fluctuate. California’s expected rocky transition into legalization as municipalities struggle to legalize supply chains and regulate their markets, as well as Nevada’s regulatory difficulties which deeply impacted supply, as well as the cash-only nature of the industry due to federal regulations are all factors that impact analysis of the numbers and market projections. As federal uncertainties work themselves out and more states legalize, those fluctuations will likely continue until some sort of stability is reached.