The U.S. wholesale hemp market saw price erosion plod on for the most part in July. Despite indications that both existing supply and future production of CBD Biomass are contracting, the assessed price for such plant material dropped to an all-time low for the second straight month. This month’s biomass price decline was observed even as some reports from the field have stated that the glut of biomass generated in previous seasons is dwindling and it appears a near certainty that this year’s cannabinoid hemp harvest will be significantly smaller than any since the crop was legalized.
Assessed wholesale prices for all forms of extracted CBD tracked by Hemp Benchmarks also fell this month. Retail sales of CBD products continue to soften, offsetting the balancing effect on the market of shrinking biomass supply and production. Although sales of hemp-derived THC products – which are typically manufactured from extracted CBD – appear to still be growing, our data indicates that demand for CBD stemming from this product category is not having the positive effect on price that some outlets have reported.
CBG Biomass prices have been relatively steady for a year at this point, indicating that the minor cannabinoid once touted as the “next big thing” has at least found a stable market, even if it failed to take off with consumers to the degree that some anticipated. This month’s assessed price for CBG biomass is comparable to the trailing 12-month average price. Prices for CBG extracts continued to trend downward in July, but the year-on-year decline in the price for CBG Distillate – at 9% – is the smallest of any extracted hemp cannabinoid product tracked by Hemp Benchmarks.
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