Prices for nearly all cannabinoid hemp products tracked by Hemp Benchmarks continued their unrelenting decline in August. The aggregate price of CBD Biomass persisted in the gradual slide that commenced early this year. This month’s price represents another new all-time low and is off 27% from the start of 2022. Falling prices for the raw material underpinning the CBD product market have continued even in the face of drastically contracting acreage planted with cannabinoid hemp, which we detail below in the August Production Update.
Assessed wholesale prices for all forms of extracted CBD tracked by Hemp Benchmarks fell for the second straight month in August. We have in recent years reported ad nauseum on the glut of CBD biomass and extracts on the market. While data from state agriculture departments and the U.S. government has allowed us to provide reasonable estimates of biomass production and inventories, there has been no way to definitively determine how much extracted CBD was manufactured by processors from 2019 to today. Given observed price movement, it appears safe to say that unsold inventories of extracted CBD continue to outweigh demand significantly, a situation exacerbated by the fact that retail demand for CBD products has been softening for roughly a year.
We reported last month that CBG Biomass prices have been relatively steady for about a year. This month, the assessed price for CBG biomass matched its all-time low, which it hit previously in January and May of this year. With the 2022 harvest imminent, it is possible that this month’s dip presages further declines in a product category that has seen its price slide 16% from a year ago. Prices for CBG extracts also declined, with the observed price for CBG Isolate establishing an all-time low for the fourth consecutive month.
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