Hemp harvests began to be cut down across the U.S. this month. With cannabinoid hemp production shrinking compared to 2022 and fresh material coming to market, the assessed price for CBD Biomass saw a rare rise in August. August’s 2023’s biomass price is off 11% year-on-year, an improvement from the 21% decline observed from August 2021 to August 2022.
While biomass pricing may be showing the initial signs of a long-awaited recovery, assessed wholesale prices for CBD extracts continued to slide for the most part in August. Excess biomass generated in prior years has in many cases aged beyond the point of remaining marketable, but extracted products are shelf stable for longer, allowing the oversupply in this portion of the market to persist.
The observed price for Delta-8 THC Distillate increased in August after three straight months of declines, rising 3% to $500 per kilogram. We noted in last month’s report that wholesale prices for delta-8 have stabilized over the past year after previously falling consistently. August 2023’s assessed price for delta-8 THC is virtually identical to the price of $499 per kilogram observed in August 2022.
Delta-10 THC Distillate averaged $1,274 per kilogram in August, up 3% from the previous month. August 2023’s assessed price for delta-10 THC distillate is down by 8% year-on-year. Compared to a 13% year-on-year decline observed as of last month, it appears wholesale pricing for delta-10 is steadying as well.
Smokable CBD Flower’s overall assessed price bounced back a bit in August, but still settled at its lowest point since October 2022.
Price Commentary
Wholesale CBD Biomass price sees rare rise; CBD extract prices continue to slide; Delta-8 THC price stable year-on-year.
August Production Update
USDA data shows overall planted acreage steady YoY; fiber acreage expands while cannabinoid and grain acres shrink; current market sees Latin American countries increasingly exporting to U.S. and other countries.
Weather Outlook
Drought conditions ease in some hemp-growing states as harvest arrives; September forecast calls for above-normal heat in western U.S., precipitation in Southeast.
Industry & Research Updates
Under Armour contracts with supplier for specialty hemp yarn; new fiber harvesting equipment available; Scottish researchers study hemp meal as salmon feed.
Federal Regulatory Updates
House subcommittee hearing addressed FDA inaction in regulating CBD; Congressional committees request information from stakeholders on CBD market.
State Updates
Developments in hemp regulation, licensing and acreage, and growing conditions from numerous states.
