Mar­i­juana price slips 2% to $2,001

Financial Mirror (Cyprus) - - FRONT PAGE -

For the week ended Fri­day, De­cem­ber 25, the spot price in­dex for a pound of cannabis in the U.S. de­creased by $40 (about 2%) from $2,041 in the prior week to $2,001. The sim­ple (non-vol­ume-weighted) av­er­age price for a gram dropped nearly 2% from $4.84 to $4.75.

The fu­tures price for Jan­uary rose from $1,850 to $1,900 on the near-month con­tract. For the month of Fe­bru­ary 2016, the for­ward price in­creased from $1,875 a pound to $1,925. The six-month for­ward price for June 2016 re­mained un­changed at $2,050 a pound.

About two-thirds of the past week’s trans­ac­tions occurred in a range of $1,641 to $2,671 per pound, ac­cord­ing to the an­a­lysts at Cannabis Bench­marks, who also noted ten mar­ket trends for the year. Among them:

-A fed­eral dis­trict court up­held the Rohrabacher-Farr amend­ment, pro­hibit­ing the U.S. Jus­tice Depart­ment from pros­e­cut­ing busi­nesses op­er­at­ing legally un­der state law.

- Bank­ing ser­vices re­main un­avail­able to the vast ma­jor­ity of cannabis busi­nesses. With­out ac­cess to banks, cannabis busi­nesses are forced to op­er­ate on an all-cash ba­sis.

- The IRS con­tin­ues to pre­vent cannabis busi­nesses from de­duct­ing nor­mal op­er­at­ing ex­penses from their tax fil­ings.

- Con­tin­ued use of pes­ti­cides that are not ap­proved for cannabis ap­pli­ca­tion. An in­ci­dent in Colorado last March re­sulted in the quar­an­tine of more than 100,000 plants and had a direct im­pact on tighter test­ing re­quire­ments be­ing adopted in Ne­vada and Ore­gon.

- The high cost and en­ergy in­ten­sity of in­door cannabis cul­ti­va­tion could lead to tighter reg­u­la­tion on car­bon emis­sions.

A price check at in­di­cates prices range from $25 a gram to a low of $3 in the all-cities in­dex. The over­all av­er­age price for a gram of mar­i­juana (all strains) in Colorado is cur­rently $12.63, rang­ing from a high of $20 a gram to a low of $8.

In Cal­i­for­nia the price is $14.57 per gram, rang­ing from $25 down to $6 per gram, and in Michi­gan the av­er­age is $16.59 per gram in a range of $20 to $10. The av­er­age in Ore­gon is $10.34 per gram in a range of $20 to $3, while in Wash­ing­ton the av­er­age is $11.02 per gram, rang­ing from a high of $15 to a low of $6.

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