The market frenzy that propelled volume to record highs last month continues to forge ahead with little sign of slowing down.  Market fluctuations continue to rock Colorado’s marijuana wholesale market, keeping buyers and sellers on their toes  as we head into the second half of summer.

Flower Powerhouse Presses On

While July brought notable shifts in the wholesale flower market from months prior, these shifts as a whole  marked a return to the traditional market dynamics that had deteriorated as of late.  After a brief shortage in June, medical flower volume rose threefold this month to 268 pounds, returning to normal historical averages. Conversely, volume for recreational flower retreated from its peak of 515 pounds in June, to 305 pounds, a 40% decline.  Altogether, these turnarounds in volume offset one another to round out another near-record month for volume on the Cannabase Marketplace.


Overall volume for wholesale flower remained elevated, with  a total of 573 pounds of new product hitting the Marketplace in July, a mere .7% drop from the all time peak last month.

Prices of medical flower slumped as volume made a comeback, spurring sellers to position listings more competitively. With some listings going for as low as $1300/pound, buyers are not only enjoying better selection, but also deep discounts. The average asking price for a pound of medical bud dipped 19.7% from June to $1730.

Prices for recreational flower rose slightly, about $50 per pound (or 2.6%), fueled by tighter wholesale supply. Listings for recreational flower remained popular in July, receiving 16% more views than those for medical flower and the highest number of wholesale connections than any other segment. Though volume remains elevated, sustained demand for quality recreational flower has allowed for prices to climb slowly.

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Extract Surge Continues

Though sellers hoped a slow July would help clear the surge in product we observed last month, hopes faded quickly as the pace of rising volume continued to intensify. Over 45 pounds of new extract flooded the market this month, topping June’s record-breaking  volume by nearly double, and raising concerns amongst sellers already grappling with sparse demand.

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Unlike the wholesale flower market, where price fluctuations closely follow shifts in supply and demand, extract continues to defy conventional market forces. Despite soaring inventories, asking prices for extract remained within their normal range of $18-24/gram. By now, wholesalers have become accustomed to a volatile wholesale extract market, and they appear to be limiting their exposure to this by insulating asking prices from changes in quantity.

Whether the sellers will yield to the pressure to lower prices remains to be seen, but both buyers and sellers will surely be keeping a close eye on the Marketplace speculation continues to mount over the future of the extract market.

Market Prospects

The Cannabase Marketplace now represents 64% of all licenses issued by the MED in Colorado, and as new licensed businesses continue to enter the market,  we can expect the focus to shift toward how new players will impact the still-growing wholesale environment. With Colorado's marijuana wholesale environment as unpredictable as ever, it's more important than ever to be following up-to-date analytics and information. Be sure to follow the Cannabase Marketplace on Twitter and subscribe to our in-app Cannalytics™ for real-time updates and market insights.

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