Wholesale hemp prices were largely stable to close the year, with nearly all product categories tracked by Hemp Benchmarks seeing relatively small month-on-month changes, if any at all. The assessed price of CBD Biomass was flat from November to December, holding at its all-time low established in the former month. In interviews with market participants throughout this year, many expressed the expectation – or at least hope – that contracting production and shrinking supplies of biomass harvested in previous years would result in a price recovery, which to this point has not come to fruition.
Wholesale prices for extracted CBD saw nearly across-the-board gains for the third straight month, with only Crude CBD Oil experiencing a price decline in December. Still, prices for nearly all types of extracted CBD generally declined in 2022, with year-on-year downturns ranging from 10% (crude CBD oil) to 36% (THC Free CBD Distillate). Only the price for Full Spectrum CBD Distillate is up from a year ago, by 10%.
Wholesale CBG product prices continued their recent steadiness to conclude 2022. Viewed through a longer lens, however, prices in the CBG sector showed little correlation in their movement over the past year. The assessed price for CBG Biomass is up 8% year-on-year, while that for CBG Isolate has tanked 33% since December 2021. CBG Distillate’s observed price in December 2022 was off only 2% from a year prior.
The observed price for Delta-8 THC Distillate was back on the rise in December, the fourth of the last five months to see an increase. The assessed price climbed 4% to average $560 per kilogram in December. The range of reported prices spanned from $400 to $700 per kilogram.
Delta-10 THC Distillate averaged $1,279 per kilogram in December, up just $4 from November’s assessed price. Observed deals for delta-10 THC ranged between $1,000 and $1,500 per kilogram this month, stable from November.
Hemp Benchmarks was again able to observe prices for HHC and THC-O distillates this month. Note that the following are asking prices and are not verified transactions. Asking prices for THC-O averaged $686 in December, down from just under $700 per kilogram last month, while ranging between $500 and $900 per kilogram. HHC distillate asking prices averaged $1,156 per kilogram, down 9% from November, while ranging between $800 and $2,000 per kilogram.
Smokable CBD Flower’s overall assessed price ended the year on the decline. While month-to-month variation in pricing has been observed for this category, December 2022’s aggregate price for smokable CBD flower is down just 4% from a year ago, making it one of the more stable product types in the hemp-CBD sector in 2022.
CBD Biomass price holds at all-time low; CBD extract prices rise along with Delta-8 and Delta-10 THC prices; Smokable CBD Flower price down only 4% from year ago.
Market participants look forward to 2023, hope grain and fiber sectors can get a boost from more favorable policy in upcoming Farm Bill.
Brazilian hemp stakeholders hope that President Lula’s return to office will mean more welcoming climate for hemp industry.
Texas A&M receives USDA grant to develop hemp germplasm collection; UN Conference on Trade & Development releases report with recommendations to grow hemp industry worldwide.
DEA registration requirement for hemp testing labs delayed again; FDA issues more and wider-ranging warnings to CBD companies.
Developments in hemp regulation, licensing and acreage, and growing conditions from numerous states.