June 2020 Hemp Spot Price Index Report

June 24, 2020

Price Commentary

The most notable development this month is that our aggregate assessed price for CBD Biomass experienced an uptick for the first time since Hemp Benchmarks began reporting prices in April 2019. The increase was due mainly to rises in rates for smaller-volume deals, while larger transactions essentially held steady from May. Smokable CBD flower also saw its assessed price rise this month. 

June’s price movement suggests that the U.S. hemp industry may have seen the current market bottom for CBD plant material. As we discuss below, however, many growers are still sitting on 2019’s production. At this point, it increasingly appears that unsold or unmoved biomass generated last year will be a loss in most cases, with a new crop underway and 2020’s harvest only a few months off.  

Prices for Refined CBD extracts were also up for the most part, with only Full-Spectrum CBD Distillate seeing a month-over-month decline. The assessed price for THC Free CBD Distillate jumped by 16% compared to May. The bankruptcies and financial difficulties of several large extraction operations has resulted in processing capacity being taken offline, which may be contributing to the stabilization and increase in rates for refined CBD oils. The assessed price for Crude CBD oil continued to slide in June, though, with a 32% month-over-month drop observed. Reports from the field state that processor inventories remain robust generally.

Rates for every type of seed and clone stock for which Hemp Benchmarks assesses prices also sank this month. However, given the time of year – with most outdoor crops in the ground, or about to be imminently – it is unsurprising that rates for such products should decline across the board. Feminized CBD Seeds saw a relatively small price decrease in June, while the rate for non-feminized seeds plummeted by 50%. Feminized seed is much more plentiful now than in years past, causing demand for non-feminized seed to dry up, especially considering the risk and extra labor required to farm the latter in a market where wholesale prices have experienced significant erosion.  

June Report Contents

EXCLUSIVE: Analysis of Hemp Transportation Costs
Analysis of hemp shipping costs and variables that can affect prices.

Mixed Projections for 2020 
Licensing data, reports from officials indicate decrease in registered acreage.

COVID-19 Latest
Pandemic impacting labor, licensing, sales channels.

Weather Outlook 
Above-normal precipitation in late summer, early fall forecast for some regions.

‘We Were our Own Worst Enemy’
2019 oversupply makes some growers sit out 2020.

Industry Updates
National brand announces CBD beverages despite FDA stance.

Federal Regulatory Updates
Industry group cites Hemp Benchmarks price assessments in comments to USDA.

State Updates
Several states advance measures to regulate hemp sector.

Hemp Industries Association Midwest Hemp Council National Hemp Association