A number of hemp and hemp-derived product categories saw diminishing prices in the month of May, as several factors came into play. Large volume CBD biomass transactions were reduced, allowing the aggregate CBD biomass category to see a 3% increase, despite trades for low-volume quantities losing 2% in value. CBG biomass prices also decreased as demand waivers.
Genetics pricing for CBD and CBG strains were down across the board, with clones for both cannabinoid profiles experiencing over 10% price declines. Large volumes of feminized seeds were transacted, at a significant volume discount, pushing the average price down 5% for CBD and 3% for CBG. Industrial seeds for fiber and grain strains also saw prices fall by 3%.
Smokable flower grown for high CBD, CBG and THCa all saw rising prices this month. The only sub-category that experienced a decline was THCa flower that was grown outdoors. THCa flower grown in greenhouses had a 2.8% price increase, moving it to within $15 per pound of comparable greenhouse grown Delta-9 THC flower grown and sold in licensed marijuana markets. Prices for indoor grown THCa flower also saw gains in May, albeit marginal, yet now also sit within $15 per pound of marijuana grown indoors and sold in licensed state markets. The aggregate category for THCa flower increased by 1.9% and is now commanding an over 5% premium to the U.S. Cannabis Spot Index May average reported by Cannabis Benchmarks.
CBD Isolate prices held relatively steady this month, while CBG Isolate saw a 2% price decline. The Refined Hemp Oil (Aggregate) category – consisting of THC Free CBD Distillate, Broad Spectrum THC Distillate, and Full Spectrum THC Distillate – had a 6% price decline as more THC Free CBD Distillate traded in the lower half of the price range, pulling the aggregate price down.
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Prices for both Delta-8 THC Distillate and Delta-10 THC Distillate fell in May, by 3.7% and 1.1%, respectively. The top end of the price range for both product types has been reduced as inventories of lower quality product are being traded at the low end of the price range, forcing manufacturers to adjust pricing strategies.
Transportation costs to ship hemp and hemp-derived products in dry van and sprinter van class vehicles rose for the second straight month. Rate increases are expected to continue through to September. Multiple factors aligned in May to push transportation costs up: May marks the beginning of the busy season for trucking as orders are frontloaded in anticipation of seasonal demand, new DOT guidelines go into effect reducing the pool of available drivers and continued fuel price surges which are responsible for most transportation cost increases.
