The U.S. Cannabis Spot Price Index experienced several lows for the year in the month of July. The week ending July 26th saw the index drop to $974 per pound, the lowest price since September 2023. The U.S. Outdoor Cannabis Spot Index fell to $346 per pound that week, and the U.S. Indoor Cannabis Spot Index settled at $1,252 per pound, both yearly lows. Outdoor grown marijuana prices were impacted by large volumes of product traded in the West Coast markets at prices below $250 per pound.
At the national level, the U.S. Greenhouse Cannabis Spot Index broke the negative trends of other cultivation methods, climbing to a year-to-date high of $824 per pound. In fact, this was the highest price per pound for cannabis flower grown in mixed-light conditions since June 2022.
The price of wholesale cannabis flower in California saw the most volatility of the 22 state markets that we report on. The overarching trend in July was that of bulk outdoor marijuana flower transactions dictating the movement of the California Cannabis Spot Index. Throughout most of the month, large volumes of sub-$200 per pound transactions of outdoor grown flower pushed the California Outdoor Cannabis Spot Index to a yearly low, as well as pushing the state composite price to its lowest assessment since the first quarter of 2024. Reports from members of our Price Contributor Network elude to a very competitive market for sungrown flower, with many cultivators choosing to sell their crops as biomass or fresh frozen, minimizing the costs associated with trimming, drying, and curing their product. Additionally, several cultivators we spoke with are clearing their inventory to generate cash and storage space for the approaching harvest. Indoor grown flower in California has demonstrated relative stability over the course of 2024, with the July average wholesale cannabis price just $2 off the 2024 average price per pound. Prepackaged sales for indoor and greenhouse grown flower also saw noticeable price declines this month, with the former dropping over 8% and the latter by 5%.
In Oregon, a similar scenario to that of California surfaced. Wholesale cannabis prices for Oregon outdoor grown flower saw a yearly low to end the week of July 19th. The Oregon Outdoor Cannabis Spot Index average for July is down 28% from the 2024 opening price assessment. Indoor grown flower prices in Oregon also struggled, with the July average price down over 17% compared to the January average. Surplus product traded in the lower price quartile were the major factors in the price decline of both grow types.
Arizona and New Mexico both experienced positive gains in wholesale cannabis prices from June to July. The average price per pound in Arizona rose 9.8% in July, while the average price in New Mexico climbed 14.4%. In Arizona, despite instances of downward pressure from large volumes of greenhouse grown flower priced in the lower quartile, the Arizona Greenhouse Cannabis Spot Index climbed 7.6% month-on-month, with indoor prices also gaining 4.9% during the same period. Indoor grown flower prices were the main driver in the New Mexico performance, with the July average price per pound of indoor flower climbing 9.1% compared to the June average.
In Michigan wholesale cannabis flower pricing news, the Michigan Greenhouse Cannabis Spot Index climbed above the indoor volume weighted average price for the first time in our reporting. The movement of greenhouse flower pricing to surpass the price of indoor flower has been anticipated by our analysts, as we detailed in the PREMIUM report how a similar phenomenon occurred in Colorado in February 2020, 73 months after the opening of the recreational market in the state. Michigan’s recreational market began serving the public on December 1, 2019, 56 months ago.
The Massachusetts market has recently begun showing signs trending in the same direction, as more greenhouse grown flower is produced and sold, applying downward pricing pressure on indoor grown flower prices. Since the close of 2022, the Massachusetts Indoor Cannabis Spot Index has declined 27%, while the per pound price spread between indoor and greenhouse grown flower has compressed to as low as $228 in recent weeks. It has been nearly 69 months since the first recreational dispensaries opened in Massachusetts. It is yet to be seen if other state markets, such as Nevada and Vermont, will demonstrate the same trend following legalization of recreational cannabis sales.
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