The overall assessed price for CBD Biomass was stable month-on-month in September; it remains down 14% year-on-year. Despite the aggregate price holding steady, there was a sign of positive movement when viewing prices by volume bracket, with the assessed price for transactions of 25,000 pounds or less seeing a 6% rise from August.
Prices for CBD extracts remained depressed, with the various product categories covered by our price reporting seeing stability or declines for the most part. The price rises that were observed for Full Spectrum CBD Distillate and CBD Isolate were negligible.
Although overall assessed prices for CBD biomass and extracts are holding at or near record-low levels, reports from the field tell of the surplus of biomass inventory from prior years being depleted. With under 8,000 acres planted for CBD and other cannabinoids last year and just over 5,000 reported so far this year, production has plummeted compared to 2019 and 2020, when we estimated about 250,000 and 150,000 acres, respectively, planted with cannabinoid hemp. Given the steep dropoff in production, it seems only a matter of time until cannabinoid biomass prices see a bump.
The observed price for Delta-8 THC Distillate was back on the decline in September, falling 6% from the prior month to $472 per kilogram. The range of reported prices spanned from $350 to $650 per kilogram. After seeing year-on-year stability in delta-8 pricing over the previous two months, September 2023’s assessed price is off 14% from $550 per kilogram in September 2022.
Delta-10 THC Distillate averaged $1,270 per kilogram in September, down $4 from the previous month. Observed deals for delta-10 THC ranged between $1,100 and $1,500 per kilogram this month. September 2023’s assessed price for delta-10 THC distillate is down by 10% year-on-year.
Hemp Benchmarks was able to observe price data for HHC and THC-O this month. Wholesale prices for HHC distillate averaged $731 per kilogram, up 4% from the month prior, with individual transactions ranging between $600 and $900 per kilogram. THC-O distillate’s wholesale price averaged $1,119 per kilogram, up $7 month-on-month, while individual deals spanned from $825 to $1,500 per kilogram.
Price Commentary
- Wholesale CBD Biomass price holds steady; CBD extract prices remain depressed; sun-grown smokable CBD Flower see significant price rises.
September Hemp Production Update
- South Dakota industry group leader talks getting farmers interested in hemp; reported fiber and grain contract prices higher this year than in prior years; CBD market activity varies state-to-state.
Weather Outlook
- Parts of Midwest see late-season rains; October forecast calls for warmer-than-average month across much of U.S. for crops still in the ground.
Hemp Industry & Research Updates
- Charlotte’s Web shakes up executive team and board.
Federal Hemp Regulatory Updates
- State cannabis regulators send their 2023 Farm Bill requests to Congress.
State Hemp Program Updates
- Developments in hemp regulation, licensing and acreage, and growing conditions from numerous states.
