MJ Biz Daily report…
In early 2015, a number of Colorado’s longtime marijuana industry insiders predicted an impending price crash for wholesale cannabis.
But the crash failed to materialize this summer as feared. In fact, the opposite trend is playing out: prices have skyrocketed in recent months.
In October, the online marijuana wholesale marketplace Cannabase saw recreational product being moved for as much as $3,000 per pound at one point. That’s up from a maximum price point of $2,200 per pound in January and February, Cannabase CEO Jennifer Beck said, and an average sale of about $1,900 early this year.
“To see product sell out in a matter of hours for $2,800 a pound is unbelievable,” Beck said in October. “Even eight weeks ago, we were seeing bidding wars.”
Cecelia Gilboy, a longtime wholesale operation based in Boulder, said she’s seen the exact same trend. She chalks it up mainly to a new microbial testing requirement that went into effect Oct. 9 for recreational cannabis.
“The day that that went into effect, I was at a client’s warehouse in Denver, and we both started getting calls,” Gilboy said. “Over the course of a few hours, we saw prices jump from $2,600 to even $3,000 a pound.”
With these sort of numbers traders will want to get in on the action and we’d suggest even more so as industrial hemp production and demand grows.
The amount of what if’s are just too many to count. How many years before a Federal set of regulations governing the trading of the product like any other agricultural commodity.
Gives us an excuse to feature a favorite scene
Image – ZeroHedge.com