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The Colorado wholesale marijuana market remained active this May, with over 400 pounds of flower hitting the Marketplace. Despite the post-4/20 slow down, buyers and sellers continued moving near-record amounts of product, erasing the brief uptick in prices we saw this April.  

This continued burst of increased wholesale activity has brought about some notable changes in Colorado's marijuana wholesale environment.

Marijuana Wholesale Market Volume

Extract Volume Surges

Extract volume exploded in May, with vendors posting 9500+ grams to the Marketplace during the month - marking the single highest volume of extract posted to the Marketplace to date. Though we’ve become accustomed to seeing volume increases impact asking prices for wholesale flower, this sudden rise in extract volume is truly unprecedented. Along with the surge in volume, average asking prices for wholesale extract took a significant hit this May, dropping from $23.42/gram in April to $18.50/gram.   

Wholesale Marijuana Extract Volume

The surge in extract volume has made it difficult for sellers to offload product, especially those unable to keep up with the increasingly competitive prices. In this market, our best advice to sellers pushing extract is to maximize exposure to your listing by including photos (listings with photos result in 19% more connections than those without), pull in your Cannlabs data (buyers love this!), and add a feature tag to give your listing a boost.

Rec Prices Sink

May was not only a big for extract, the second highest volume of recreational flower hit the Marketplace, with 345.5 lb in new listings posted during the month.

The boost in volume for recreational product since the end of mandated vertical integration has rocked asking prices for much of 2015. Though recreational flower has traditionally priced higher than medical, we’ve seen this trend fall apart entirely over the last couple of months.

AAP marijuana wholesale

In April's Cannalytics update, we explored the possibility of asking prices for medical and recreational product reaching parity in the Marketplace, but for the time being, it appears as though price volatility has taken this prospect a step further. Though prices for recreational flower remained near all-time lows in April they continued to plunge, dropping from $2,100/lb to $1,883/lb in May, a steep 10.3% drop.   

The Wholesale Marketplace: Looking Forward

Sellers looking to stand out in the Marketplace have continued pricing lower in an effort to offload product faster. With buyers constantly looking out for the right product at the right price, these listings tend to sell fast.
In this increasingly fast-paced marketplace, wholesalers with an eye on the market stand to get the best deals on their product. Fortunately, keeping up with the latest developments in the Cannabase Marketplace is easier ever. Be sure to follow the latest from the Marketplace, and subscribe to our in app Cannalytics™ data for detailed and up-to-date market insights.

 


New to the Marketplace or looking for more wholesale data? If you're a licensed business, sign up for the Marketplace here. If you're not a licensed business, sign up for a free Cannabase Reach account, where you can subscribe to in-app Cannalytics™ charts & graphs. 

 
 
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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