The month of April demonstrated continued pricing stability across a large majority of product categories. Small price increases were present for CBD biomass transactions for volumes less than 25,000 lbs and for CBD smokable flower, which had its first positive movement since last fall.
Prices for clones and feminized seeds, for both CBD and CBG, rose on continued interest by indoor and greenhouse cultivators. Those growing in warehouses and hoop houses make lower volume purchases, reducing opportunity for large order discounts, resulting in upward movement of the price assessments. Outdoor cultivators are continuing to benefit from a substantial inventory of seed stock, able to obtain tens of thousands of seeds at highly discounted prices.
Flower containing high levels of THCa continues to collect top dollar, competing with prices for wholesale cannabis flower grown and sold in regulated medical and adult-use state cannabis markets. This month saw a 0.7% per pound gain. Prices for THCa flower grown by licensed hemp producers are higher than 10 of the 27 state markets tracked by Cannabis Benchmarks. Indoor grown THCa flower had a 1.3% decrease in prices this month, while greenhouse and outdoor grown flower saw a 3.9% and 1.5% increase, respectively.
CBD Isolate prices fell for the eighth straight month, losing 5.1% in April, and down 15% year-over-year. Full Spectrum CBD Distillate prices also declined this month, by a marginal 1.5%, or $4 per kilo. Ample supply of these products – feeding the production of specialty cannabinoid isomers – has created a competitive marketplace. THCv Isolate had the largest price decrease of all products reported on, shedding over $200 per kilo.
As turmoil continues to impact global shipping, fertilizer prices continue to climb. The latest reports from FarmWeek Now and Progressive Farmer indicate that six of the eight major fertilizer categories have experienced over 5% price increases, with several categories experiencing rates climbing over 10%. Farmers planting traditional crops, such as soybean and corn, have reported plans to significantly decrease planted acreage to ensure what they do plant is able to be tended to adequately.
Several factors have pushed transportation costs up in April: Capacity tightening, Seasonality, Fuel and operating costs, and Equipment-specific volatility. Expected demand for long-haul and produce-heavy routes are increasing as spring transitions into summer, combined with rising fuel costs, pushed shipping rates up by 5 – 8% across all carriers this month. Additional demand for the sprinter and reefer class vehicles has added to constraints on driver availability. For more information contact Fide Freight.
