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Last month’s sudden surge in activity in Colorado’s wholesale marijuana market appears to continue to gain momentum. June was yet another record breaking month for both wholesale flower and extract in Cannabase Marketplace.  Though the wholesale environment remains as volatile as ever,  this month’s Marketplace developments bode good news for both buyers and sellers.

Wholesale Flower Settles

Marketplace volume reached new highs for 2015 this month, with 590 lb of new wholesale flower topping the previous high of 438 lb posted in May.  The majority of new product posted was recreational, making up 89% of all flower volume in June.   

Fortunately for buyers, recreational prices continued to stabilize. The average asking price for a pound of recreational flower settled at $2,027.67, nearly 20% higher than prices we observed the month prior. Interestingly, though total volume increased, the number of recreational listings posted to the Marketplace declined slightly. This boost in larger listings signals an increase in new harvests for retail product, a good indicator of rising supply.

 

June wholesale marijuana flower volume

The slowdown in medical product volume can be attributed to the lower price trends we witnessed this month. With sellers posting top-shelf medical flower for as low as $1600/lb early on, other sellers were given a strong incentive to hold their product on the sidelines in hopes of a future price spike.

recreational wholesale marijuana flower volume

Fortunately for buyers, recreational prices continued to stabilize. The average asking price for a pound of recreational flower settled at $2,027.67, nearly 20% higher than prices we observed the month prior. Interestingly, though total volume increased, the number of recreational listings posted to the Marketplace declined slightly. This boost in larger listings signals an increase in new harvests for retail product, a good indicator of rising supply. 

The slowdown in medical product volume can be attributed to the lower price trends we witnessed this month. With sellers posting top-shelf medical flower for as low as $1600/lb early on, other sellers were given a strong incentive to hold their product on the sidelines in hopes of a future price spike.

wholesale flower average asking prices 2015

Medical prices experienced a dramatic spike in recent months, with average asking prices trending higher than those for recreational for the first time in Marketplace history. As price dynamics returned to normal this month, the focus for both buyers and sellers seems to have shifted away from medical flower.

Extract Volume Shatters Records

Last month’s record extract volume appears to  have been only the start of a new wave of product that has flooded the market this month. Product listings for everything from shatter, budder, activated oil, to live resin remained popular this month.  Nearly 21.5 pounds of extract were posted to the Cannabase Marketplace in June alone.  Though we normally measure extract in grams, the sheer volume we observed this month was truly staggering compared to historical market averages.

extract wholesale volume marijuana colorado 2015

The current glut in inventory can be attributed to the continued propensity of cultivators to convert unused  trim and flower into more valuable extracts. This seemingly smart move however, comes with a hefty tradeoff. Not only is extract slower to sell off store shelves, it’s chronic oversupply makes it tougher sell on the wholesale marketplace. Conversely, we’ve observed wholesale trim consistently in short supply, and though the return is significantly smaller, buyers flock to trim listings and they sell fast.   

Though sellers are well advised to tread carefully when it comes to navigating the saturated wholesale extract environment, buyers will surely enjoy the increased product selection and low prices.

With Colorado's marijuana wholesale environment remaining volatile, 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, if you're a licensed business, be sure to subscribe to our in-app Cannalytics™ for real-time updates and market insights.

About the Author

Erik is Cannabase’s resident number cruncher, data smasher, and penny pincher. An avid neck-pillow enthusiast, Erik spends his free time commuting to work, winning games of risk, and counting cash.

 

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