July 2023 Hemp Spot Price Index Report

July 2023 Hemp Spot Price Index Report
July 26, 2023

Wholesale hemp cannabinoid product prices sank again for the most part in July. Although a number of sources have told Hemp Benchmarks that they expected prices to rise due to the depletion of old inventory and the drastic production pullbacks of recent years, the assessed price of CBD Biomass once again dropped to a new all-time low. July’s aggregate CBD biomass price is off over 20% year-on-year and down 94% from July 2019, prior to that year’s crop that swamped the market with supply and triggered the downward price spiral.  

Wholesale prices for Crude CBD Oil and CBD Isolate bounced back somewhat after sinking to historic lows last month, but July’s assessed prices for those products were still down from a year ago, by 16% and 9%, respectively. Prices for various types of CBD Distillates were down across the board from June to July 2023. Most CBG product prices were also down month-on-month in July, with CBG Biomass and CBG Isolate seeing new record-low prices in the month. 

Delta-8 & Delta-10 THC Distillate*

The observed price for Delta-8 THC Distillate declined for a third straight month, dropping 6% to $486 per kilogram in July. The range of reported prices spanned from $300 to $650 per kilogram, unchanged from last month. While wholesale prices for delta-8 THC have slid in recent months, the current decline follows several months of rising rates. Interestingly, this month’s assessed price is virtually unchanged from a year ago, when it was observed at $484 per kilogram in July 2022.  

Delta-10 THC Distillate averaged $1,242 per kilogram in July, up 4% from the previous month. Observed deals for delta-10 THC ranged between $1,050 and $1,600 per kilogram this month. July 2023’s assessed price for delta-10 THC distillate is down by 13% year-on-year.  

Hemp Benchmarks was able to observe price data for HHC and THC-O this month. Wholesale prices for HHC distillate averaged $757 per kilogram, with individual transactions ranging between $600 and $1,050 per kilogram. THC-O distillate’s wholesale price averaged $1,055 per kilogram, while individual deals spanned from $750 to $1,400 per kilogram. 

While the market for intoxicating hemp-derived cannabinoids remains volatile, it appears that price trends for the oldest isomer of the bunch – delta-8 – have begun to stabilize after roughly three years of market activity. Looking back two years ago, the observed price for delta-8 THC distillate was $1,065 per kilogram in July 2021, with the current month’s price representing a 54% drop. 

Market participants in the intoxicating hemp-derived cannabinoid space continue to report generally brisk business and have expanded into marketing a wide array of THC isomers and similar compounds. Notably, this sales channel for extracted CBD, which is used as a precursor in manufacturing these synthetic cannabinoids, has not resulted in discernible upward pressure on prices for CBD extracts, suggesting supplies of such material remain robust, in part due to declining consumer demand for CBD products generally.

[*Editor’s Note: The prices quoted above for Delta-8 THC Distillate, Delta-10 THC Distillate, Smokable CBG Flower, and CBN Isolate 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.]

Price Commentary

  • Wholesale CBD Biomass price falls to new record low; CBD extract prices remain depressed; Delta-8 THC price stable year-on-year.

July Production Update

  • Producers report fiber crops coming along well despite challenging conditions; 2023 production still appears set to contract overall due to shrinking CBD hemp acreage.

Weather Outlook

  • Farmers in different regions bedeviled by extreme weather, from record heat to heavy rains and flooding; above-normal heat expected for remainder of Summer across much of the U.S.

Industry & Research Updates

  • Meta updates CBD product advertising policy; new report provides overview of global hemp fiber market.

Federal Regulatory Updates

  • FDA and FTC send more warning letters to companies marketing delta-8 THC edibles; House subcommittee to hold hearing on lack of CBD regulations from FDA.

State Updates

  • Developments in hemp regulation, licensing and acreage, and growing conditions from numerous states.
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