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In an oversupplied market, asking prices for wholesale recreational flower struggled to find stability in June. As buyers enjoy a surplus of options, an increased focus on supply will continue to set the tone for market dynamics this summer.

Price Disparity Escalates

After months of sustained price drops, sellers welcomed a slight 1.6% bump in recreational flower asking prices this June. The modest increase however, did little to ease uncertainty among sellers, which continue to grapple with near-record low wholesale prices.

The market for recreational flower continues to show signs of an intensifying competitive environment as the highest asking price dropped 10% from May to $1800/lb. Though it is common for many to post ambitious asking prices in hopes of testing the market for best offers, sellers now appear to be in a race to the bottom - pricing at rock bottom levels to stand out from competing wholesalers. Even recreational trim, which is generally in high demand, has taken a significant hit this month, plunging 8.9% to $500/lb.

Flower Prices

 

Asking prices for medical wholesale flower, on the hand, experienced a sizable 4.4% increase to $1914 per pound from $1833 in May. Scarce supplies drove prices higher for the third consecutive month, widening the largest price disparity between medical and recreational flower in over a year.

Market Prospects

With the growth in consumer sales we’ve seen over the last couple of years, this level of growth has been sustainable until only recently. Now we’re starting to see supply consistently outpace demand, and the market is responding accordingly. This dynamic intensifies in the summer months, as outdoor and greenhouse cultivators ramp up production and flood the market with inexpensive product. Until these factors begin to subside, we can expect the current market conditions to remain in place.

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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