The overall assessed price for CBD Biomass sank 9% this month, just above the all time low price observed in September and October 2021. Monthly prices for CBD biomass have hovered within a tight price range from July 2021 to the current month, but are in a downtrend this year, having fallen from the high point of the range in January.
Price movements for CBD extracts were mixed this month, with numerous product categories again seeing small gains. However, prices for all types of CBD extracts assessed by Hemp Benchmarks are down significantly year-on-year, with the smallest decline seen in Broad Spectrum CBD Distillate and the largest being the aggregate price for Refined Hemp Oil.
Despite contracting production of CBD hemp in both 2020 and 2021, along with increased demand for extracted CBD to manufacture delta-8 THC and similar compounds, prices for CBD biomass and extracts have continued to decline. Many hemp-CBD firms are vertically integrated, which could be contributing to depressed prices if in-house production is sufficient and wholesale purchasing on the open market is not necessary.
Additionally, while we reported last month that public company filings indicated stable CBD sales to close 2021, new financial disclosures from Charlotte’s Web show a 17% year-on-year decline in net revenue for Q1 2022. However, the company attributes the downturn largely to shipping disruptions caused by the Marshall Fire, a severe wildfire that burned in the Boulder, Colorado area just before the start of this year. Consequently, it is likely too early to tell whether CW’s Q1 2022 sales figures portend slowing demand for CBD this year.
Delta-8 & Delta-10 THC Distillate*
The observed price for Delta-8 THC Distillate declined for the eleventh consecutive month, slipping 9% from April to average $579 per kilogram this month. The low end of the reported price range was steady at $400 per kilogram. The high end of the observed price range declined $50 month-on-month to $800 per kilogram.
Delta-10 THC Distillate averaged $1,890 per kilogram in May, down 10% from April, when we observed a 1% month-on-month downturn. Prices for delta-10 THC have fallen each month after Hemp Benchmarks began reporting them in October 2021. Observed deals for delta-10 THC ranged between $1,300 and $2,500 per kilogram this month, with the low end of the range seeing a $200 month-on-month increase.
Smokable Hemp Flower
Indoor-Grown CBD Flower (Bulk)
- Average: Down 2% from April
- The average price is 109% higher than the overall CBD Flower spot price.
Greenhouse-Grown CBD Flower (Bulk)
- Average Down 2% from April
- The average price is 53% higher than the overall CBD Flower spot price.
Outdoor-Grown CBD Flower (Bulk)
- Average: Down 2% from April
- The average price is 42% lower than the overall CBD Flower spot price.
Smokable CBG Flower* prices rose 7% this month to settle at $156 per pound, recovering a portion of last month’s 18% decline. However, prices for this product type remain in a downtrend overall thus far in 2022. The observed price range for individual transactions spanned from $90 to $300 per pound, according to our PCN.
CBN Isolate*
The average observed price for CBN Isolate in May was $3,284 per kilogram, down 3% from April. Individual transactions were reported to span between $2,600 and $3,800 per kilogram this month. The high end of the observed price range dropped by $200 for the second straight month and has fallen $2,200 since February 2022.
[*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
- CBD Biomass and extract prices continue downtrend; Delta-8 THC price erosion continues relentlessly; Delta-10 THC and CBN Isolate prices also falling after stabilizing last month.
May Production Update
- Hemp production appears set to decline for third straight year, but businesses report market activity picking up.
Hemp Fiber & Grain Update
- New industry group seeks exemption in federal law for fiber and grain hemp to ease burdens on farmers, facilitate better genetics.
Latin American Hemp Market Update
- Colombia moves to legalize grain and fiber hemp, but not cannabinoids; Argentina legalizes hemp and medical cannabis.
Transportation Update
- Shipping rates generally stabilized and declined in May, according to Fide Freight.
Federal Regulatory Updates
- FDA warns companies marketing delta-8 THC products with unsubstantiated medical claims; federal appeals court panel rules delta-8 THC products are legal.
