July 2021 Hemp Spot Price Index Report

July 28, 2021

This month saw continued erosion in wholesale hemp cannabinoid product prices for the most part. Crude CBD Oil and Broad Spectrum CBD Distillate were the only extracted hemp cannabinoid products to see price rises in July, but rates for each remain well below those observed just a few months ago. As we note below, market participants have reported that sales for CBD Biomass and extracted CBD products have picked up lately, largely on demand for delta-8 THC, but prices remain stagnant despite increased demand and transaction volume.

Observed rates for Delta-8 THC Distillate* have also resumed a downward trend in the face of consistent demand. This month’s observed average per-kilogram price was down 12% from June. Individual transactions ranged from $800 to $1,600 per kilogram, with both the low and high ends of the range down from last month. 

Smokable CBD Flower – another in-demand hemp cannabinoid product – has also seen its assessed price slide in recent months, after cresting above $300 per pound in May. This month, Hemp Benchmarks received sufficient transaction data to report prices for smokable CBD flower by grow type. The Hemp Benchmarks Smokable CBD Flower price assessment is an aggregate of flower grown outdoors, in greenhouses, and in indoor facilities. The average price for outdoor-grown flower this month was 26% below the July Smokable CBD Flower price assessment, greenhouse-grown flower was 40% higher, and indoor-grown flower was 116% higher. This analysis demonstrates the premium value buyers place on flower grown in controlled facilities versus in the outdoors.

The reported price for Smokable CBG Flower* also declined in July, but again settled above that for CBD flower, as it did in June. This month, smokable CBG Flower saw its average price decline by 6% month-over-month, with individual transactions ranging between $80 and $625 per pound. 

[*Editor’s Note: The prices quoted above for Smokable CBG Flower and Delta-8 THC Distillate are raw transaction data and do not constitute official Hemp Benchmarks price assessments. Transaction data for such products is currently being vetted to meet Hemp Benchmarks methodology requirements, which include, but are not limited to, several months of statistically significant data and consistent or increasing transaction volume.]

Additional July 2021 Report Contents

Price Commentary

Market participants report increased CBD sales on demand for delta-8 THC, but prices continue to slide.

July Production Update

Extreme weather and COVID-19 are impacting hemp farmers; others report sitting out the season or downsizing operations.

Weather Outlook

High heat and drought expected to persist in the West as hemp farmers already endure tough conditions. 

Hemp Fiber Market Update

Interest in fiber hemp is growing; processors take varying routes in hopes of building a functioning supply chain.

Delta-8 THC’s Popularity and Regulatory Uncertainty Persist

Demand for the synthetic cannabinoid reportedly remains strong as some states look to limit the substance to legal marijuana markets.

Federal Regulatory Updates

An insider’s view on the current status of hemp-CBD legislation in Congress.

State Updates

Developments in delta-8 THC regulation, licensing and acreage, and growing conditions from 10 states.

Hemp Industries Association Midwest Hemp Council National Hemp Association