After stabilizing in Q3 2022 – albeit at record low levels – the assessed price of CBD Biomass sank to a new all-time low in October. While a harvest-season price decline is not entirely unexpected, many in the industry have been hoping for prices to recover given that acreage devoted to CBD hemp has contracted sharply and the amount of available biomass still viable for processing has reportedly dwindled. Acres planted for CBD in 2022 are likely down by roughly 98% from 2019, based on Hemp Benchmarks production estimates from 2019, and are down roughly 50% from even last year’s relatively modest crop, according to data from the U.S. Department of agriculture and its state-level counterparts. And yet, price erosion continues.
Despite the downturn in biomass prices, assessed wholesale prices for nearly all forms of extracted CBD tracked by Hemp Benchmarks ticked upward in October, breaking a three-month streak of across-the-board declines. As we covered last month, financial results reported by publicly traded CBD companies tell of persistently declining sales. Consequently, demand for hemp-THC products may be driving much of this month’s rise in prices for CBD extracts. Rates for delta-8 and delta-10 THC manufactured from hemp-CBD were also on the rise this month, as we detail in the full report.
The price for CBG Biomass continued to exhibit stability in October. Meanwhile, the observed price for CBG Distillate rose to its highest point since June 2021, as the price for CBG Isolate dropped to a new record low for the sixth month in a row.
October Price Commentary
Aggregate CBD Biomass price falls to new all-time low despite small harvest; CBD extract prices join Delta-8 and Delta-10 THC in seeing upticks; overall CBD Flower price down as individual grow type prices generally up; CBG Biomass price continues stability.
October Production Update
Acreage planted with hemp in U.S. is down over 90% from 2019; farmers who grew fiber hemp recount experiences this season as industrial varieties find favor and CBD falls by the wayside.
Latin American Hemp Market Update
Chilean hemp stakeholders working with government to develop regulations for industry; early entrants to country’s market explore cannabinoids, terpenes, and grain products.
Transportation Update
Average shipping rates down in August on lower gas prices, slowing demand, according to Fide Freight.
Industry Updates
Hempcrete approved for residential building codes in U.S.; Canadian fiber processor lands major strategic investment; Charlotte’s Web announces partnership with Major League Baseball.
Research Updates
CBD shows promise as bioplastic; Scottish researchers publish recommendations for growing the hemp industry in their country.
Federal Regulatory Updates
Hemp lobbying group applauds Biden’s cannabis pardons, focuses on 2023 Farm Bill as opportunity for progress on CBD regulations.
State Hemp Program Updates
Developments in hemp regulation, licensing and acreage, and growing conditions from numerous states.
