May 2023 Hemp Spot Price Index Report

May 2023 Hemp Spot Price Index Report
May 31, 2023

Wholesale hemp cannabinoid product prices continued to slip gradually in May, with several new all-time low price assessments observed. The assessed price of CBD Biomass saw its six-month streak of stability cease this month, as the aggregate price for all volume brackets dropped out of the tight range it was occupying to a new historic trough.   

The wholesale prices for Crude CBD Oil held steady at its all-time low, which was established last month, while the assessed price for CBD Isolate declined to a new historic low, just a few dollars below the previous low price established two months ago. Some types of CBD Distillates saw modest price upticks, leading to a rise in the aggregate price for such product, but the gains were not substantial.     

Overall, the hemp-CBD sector is not seeing widespread or notable price recovery at this point, despite dramatic contractions in production in each of the past two years. Early signs for this season suggest acreage devoted to CBD and other cannabinoid hemp will remain relatively low, comparable to levels seen last year. Whether CBD prices bounce back significantly likely depends on increasing demand at this point, which is likely contingent on major regulatory changes that are far from certain. CBD sales have been slipping since 2020, with manufacturers cutting prices and shifting to more inexpensive product types, while some retailers have been reducing shelf space devoted to CBD products due to anemic demand.

The observed price for Delta-8 THC Distillate broke its five-month streak of consecutive price rises this month, dropping 5% to $564 per kilogram in May. The range of reported prices spanned from $400 to $700 per kilogram, with both ends of the range declining from last month.  

Delta-10 THC Distillate averaged $1,234 per kilogram in May, up marginally from the previous month. Observed deals for delta-10 THC ranged between $1,000 and $1,300 per kilogram this month.

Smokable CBG Flower* prices rose 5% this month to settle at $153 per pound. Over the past two months, wholesale prices for CBG flower have recovered a portion of what was lost during large declines that were observed in February and March of this year. The observed price range for individual transactions spanned from $75 to $250 per pound, according to our PCN.

The average observed price for CBN Isolate in May was $1,766 per kilogram, down 7% from the month prior. Individual transactions were reported to span between $1,250 and $2,000 per kilogram.

[*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.]

Hemp Benchmarks Interactive Charts

May Production Update

Potential of fiber hemp luring some operators from outside industries; producers remain optimistic that CBD market will stabilize and bounce back after years of declines.

Weather Outlook

U.S. drought picture is less severe compared to a year ago, but long-term forecasts indicate hotter and drier than normal summer for much of the West.

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Hemp Industry & Research Update

Hemp fiber-based biomaterials and packaging seen as potential sectors for growth of sustainable products.

Federal Regulatory Updates

Industry advocacy groups outline priorities for hemp in 2023 Farm Bill; DEA signals that new rules to reschedule certain hemp-derived cannabinoids forthcoming, but details sparse.

State Hemp Program Updates

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

Hemp Industries Association Midwest Hemp Council National Hemp Association