September 2020 Hemp Spot Price Index Report

September 2020 Hemp Spot Price Index Report
September 30, 2020

Price Commentary

As the harvest ramped up this month, September’s assessed price for CBD Biomass dropped significantly, by 28% from August. Decreases were observed across all trading volumes, but the most dramatic was that documented for smaller deals. As we expand upon below, market participants expect this year’s crop, combined with remaining supply from 2019, to keep rates for CBD Biomass low. 

Prices for refined forms of extracted CBD – specifically Broad Spectrum Distillate and THC Free Distillate – saw rare increases in September. Additionally, this month’s assessed price for Crude CBD Oil rose after stabilizing in recent months. However, with more supply on the way as this year’s crop gets processed it is too early to say that the upward price movement is the beginning of a trend. 

This month’s rate for smokable Bulk CBD Flower also represents an uptick from last month, in addition to maintaining the price recovery for such product that occurred over the previous three months. How this year’s harvest will impact the recent recovery and stabilization of prices for smokable CBD flower is uncertain at this point. Most supply of smokable CBD Flower from this year’s harvest has likely not yet reached market. Some farmers have not yet harvested, while product must also be dried, trimmed, and tested, which can take several weeks.  Furthermore, there are questions as to whether large portions of southern Oregon’s hemp crop – where a significant amount of smokable CBD flower is grown – will be marketable after being subject to smoke, ash, and other debris from the historic wildfires that afflicted the state this month.

Finally, rates for CBG Biomass continued to slide. While still over seven times higher than the assessed price for CBD Biomass, this month’s price for CBG Biomass is down by 86% from October 2019, the first month that we published an assessed price for such material.   

September Report Contents

Price Commentary
CBD Biomass price drops sharply as harvest is brought in; Smokable CBD Flower price maintains recent recovery. 

Growing & Harvest Season Update
Midwest farmers report good conditions, but overall U.S. harvest impacted by extreme weather, natural disasters in the West.

Market Response to 2020 Harvest
2020 production, combined with 2019 overhang, expected to continue to weigh down prices for CBD Biomass.

Hemp Transportation Costs Update
Prices to move hemp and hemp products by truck rise in September, but not as sharply as in summer months. 

Delta-8 THC and the Hemp Market
Legal uncertainties persist as market participants question how widespread demand for new cannabinoid.

Federal Regulatory Updates
Bills in Congress would address industry goals, including allowing CBD as a dietary supplement and extending 2014 Farm Bill pilot programs; industrial hemp eligible for CFAP 2. 

Special Feature: Prices, Commentary from Latin American IHA
Introduction to Latin American hemp market and export prices for certain products.

Industry Updates
Texas smokable hemp ban lifted until 2021; hemp fiber processing projects advance. 

State Updates

International Updates

Hemp Industries Association Midwest Hemp Council National Hemp Association