February 2021 Spot Price Index Report

February 2021 Spot Price Index Report
February 24, 2021

Price Commentary

With planting season approaching, prices are up this month for most types of seeds and clones tracked by Hemp Benchmarks, with the exception being a small decrease in the assessed price for Feminized CBD Seeds. The CBD genetics suppliers that we have spoken with recently have generally reported that they are receiving some interest from farmers looking to grow this year, and seed sales are occurring, but not at the levels anticipated. 

A still-sluggish CBD Biomass market is likely contributing to lower-than-expected interest in CBD hemp genetics. Spot deals for biomass remain scarce. Assessed prices for CBD plant material for extraction continued their recent stability, although very slight price decreases were observed across most volume brackets this month. The assessed price for CBG Biomass continued to slide, but remains roughly double that for analogous CBD-rich material. 

Smokable CBD Flower saw its first price decline in eight months in February. Transaction data reported by our Price Contributor Network (PCN) indicates that flower harvested in 2019 remains prevalent on the market, emphasizing the scope of production that year. Fresh flower harvested this year by indoor and greenhouse growers is also being traded currently, with such product commanding a premium.  

Prices for all categories of CBD extracts ticked upward this month. Increased observations of USDA Certified Organic CBD extracts helped to push up prices. While the frequency of trades for organic CBD extracts remains relatively small, such product receives premium prices and it appears that an expanding number of processors are gaining the USDA Organic certification. The assessed price for CBD Isolate saw a small decline this month despite reports from market participants that sales have been increasing due to its use as a precursor in manufacturing delta-8 THC.

For an update on delta-8 THC pricing and a full analysis of 21 other hemp product categories in the U.S. as well as the latest news on regulations, research, international developments, and more, subscribe to our full monthly HEMP BENCHMARKS® Hemp Spot Price Index Report

Additional Contents

2021 Growing Season Preparations
Early reports and price trends for corn, soybeans suggest 2021 could see another contraction in hemp acreage.

Tools & Knowledge to Support Hemp Farmers Increasing
Certified genetics, regional cultivar data, and pest and disease observations now available to aid producers.

2020 Harvest Assessment
Data from major states still incomplete, but available information affirms estimate of roughly 50% YoY decrease in CBD Biomass production.

Transportation Costs Update
Extreme winter weather caused short term spike in shipping rates in some parts of U.S.

Federal Regulatory Updates
Bill to allow CBD to be marketed as dietary supplement re-introduced.

Industry Updates
Canadian industrial processing facility closes financing; first application for hemp to be used as animal feed submitted.

State Updates
Production and regulatory information from 16 states.

International Updates
Reports out of EU, UK indicate positive signs for hemp industry.

Hemp Industries Association Midwest Hemp Council National Hemp Association