The U.S. wholesale hemp market saw relative stability in June in terms of prices. Gains and losses across observed product categories were both modest, with the latter outweighing the former. Apart from Industrial Seeds and Feminized CBD Seeds, in fact, all of the product categories assessed by Hemp Benchmarks have seen year-on-year declines, many quite steep, even compared to 2021 prices that had already fallen sharply from 2019 highs.
While Hemp Benchmarks is still gathering sufficient price data on industrial hemp products, comments this month from a major domestic hemp grain processor and product manufacturer suggest that contract prices for grain are seeing upward pressure due in part to the war in Ukraine and its effects on global agricultural markets. At this point, however, what might be seen as an opportunity for hemp grain appears to be a challenge, as buyers are having to pay higher prices to farmers who would largely prefer to stick to crops that they know, which are in many cases commanding elevated prices.
Returning to the cannabinoid market, the overall assessed price for CBD Biomass established a new record low this month, falling through the $0.30 / %CBD / pound threshold for the first time in the history of our reporting. CBG Biomass prices have been relatively stable for the past 10 months, from September 2021.
Prices for both Crude CBD Oil and CBD Isolate notched gains this month. Rates in both categories have also been fairly steady for much of this year, with some attributing the cessation of the previous downtrend to continued demand for THC isomers manufactured from extracted CBD.
However, rates for delta-8 and delta-10 THC continue to slide relentlessly. Still, this month’s assessed price for a kilogram of delta-8 THC represents a 41% premium compared to the observed price for CBD Isolate, while a kilo of delta-10 goes for over four times the price of CBD Isolate, on average, indicating that the economics of converting hemp-derived CBD to THC remain appealing.
June Production Update
Hemp cannabinoid market remains depressed with tight margins at best, but investors are reportedly showing interest in the space.
Hemp Fiber & Grain Update
‘Prepare to bid up’ for acres, says head of major domestic hemp grain processor
Latin American Hemp Market Update
Costa Rica’s hemp industry is hitting the ground running after legalization earlier this year.
Hemp Transportation Update
Average shipping rates generally fell in June, according to Fide Freight.
Federal Regulatory Updates
DEA prevails over industry challenges to rules that would criminalize unfinished hemp-cannabinoid extracts.
State Hemp Program Updates
Developments in hemp regulation, licensing and acreage, and growing conditions from numerous states.
