Price Commentary
A consistent refrain this month from members of Hemp Benchmarks’ Price Contributor Network (PCN) was that supply side sales of various hemp-CBD products were slow. Assessed prices for all types of extracted CBD – from Crude to Isolate to THC Free Distillate – saw declines in May. This despite the shutdown of a large-scale supplier of winterized Crude CBD Oil, which we reported last month, that numerous market participants stated would result in a shortage of such product. Declines in the prices of extracted CBD even as significant processing capacity was shuttered suggests that existing inventories of such products remain robust.
Hemp Benchmarks price assessments for several other hemp product categories exhibited month-over-month stability in May. This characterization applies to both CBD and CBG Biomass, as well as genetics of all types, including CBD, CBG, and industrial hemp stock. Comments from a Colorado-based hemp genetics supplier stated that 2021 is the company’s slowest sales year since it was founded in terms of seed sales to outdoor farmers. Still, prices for Industrial Hemp Seed and Feminized CBD Seed were both up year-over-year, by 22% and 48%, respectively, as planting season gets underway.
Amidst the price declines and stability noted above, some products saw their assessed wholesale rates rise in May. Smokable CBD Flower’s assessed price hit high prices not seen since October 2019, and prices for observed deals for Smokable CBG Flower increased over 50% from last month. One PCN member reported this month that they will be growing only Smokable CBD Flower on their Vermont farm this season, with none of the planned crop allocated for Biomass. They also commented that they anticipate dropping prices in the coming months to move existing inventory and make room for this year’s harvest.
Delta-8 THC Distillate also saw its average wholesale price experience a rare increase in May. Despite numerous states moving to ban or regulate the intoxicating isomer of THC manufactured from hemp-derived CBD, sources say that such actions are not impeding sales of the compound to this point.
Additional May 2021 Contents
2021 U.S. Hemp Production Outlook
Documented acreage licensed for production down 44% from May 2020 to May 2021; interest in industrial hemp stymied by lack of widespread processing infrastructure.
2021 Hemp Benchmarks Planting Survey
Survey respondents provided Hemp Benchmarks information on their 2021 plans and operations.
Hemp Industry Legal Developments
Conventional knowledge on contracts challenged by market realities; protected varieties becoming more common.
Delta-8 THC Update
The intoxicating cannabinoid faces increased scrutiny from regulators, but sales reportedly continue apace.
Hemp Federal Regulatory Updates
Senators introduce bill that would allow CBD to be sold as a dietary supplement, added to foods and beverages.
Hemp Research Updates
Syracuse University researchers investigate CBD’s impact on pain; USDA partners with IL company to develop personal care products.
State Updates
Licensing, production, and regulatory information covering 21 states.
