After months of sustained price drops,  wholesale cannabis prices experienced a significant rebound this month. The supply glut we observed through much of the summer appears to be finally subsiding, setting off the first spike in recreational flower prices in over a year.  


Flower Bounces Back

To the relief of suppliers across the state, prices for recreational flower continued to climb for the second straight month in August.  While price fluctuations are not uncommon on the Cannabase Marketplace, the unusually swift pace of this price correction caught many wholesalers off guard.

Typically,  changes in market dynamics become apparent over several weeks; this time, however, we are able to pinpoint the bulk of this shift to the second week in August (as seen below), where prices rose by an impressive 47.5% week over week. This not only highlights the scale of this sudden price spike, but also presents a strong indicator that the monthly average price for recreational flower ($1534/lb) is clouded by pre-spike figures, and is now likely closer to $1600/lb.


Conversely, since the medical flower market has been largely exempt from the volatility observed in recent months, asking prices have remained relatively stable.

Trim Market Fractures

The market for wholesale trim has undergone some notable transformations this summer.  Though asking prices have remained below $500/lb in recent months, price volatility appears to be intensifying.


The recent supply glut in the rec flower market has done little to stop trim prices from appreciating. Much of this can be attributed to the steady demand for high quality trim from extractors, who struggle to capitalize on seasonal price drops.

In order for processors to deliver consistent product, they must continue to court reliable suppliers, even at a premium. This has created a newly fragmented market for trim, where prices are subject to their own set of market conditions, effectively immune from fluctuations in the flower market.

Market Prospects

In the wake of the recent upturn in prices, we can expect wholesalers to be exceptionally price vigilant in the coming weeks. Market watchers are eager to see if the gap between medical and recreational prices will continue to close, and if the rebound will be significant enough to set the tone for the market into the fall. Nonetheless, many (especially recreational growers) are content to see a break in the prolonged downtrend as a welcome sign of a stabilizing market, even in the short-term.

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