The data suppliers agree to submit weekly prices anonymously and, in exchange, get discounted subscriptions or other services. He’s one of New Leaf’s team of a dozen price experts who chase down their market data and intelligence through a network of commercial players and cannabis industry groups, such as the Oregon Retailers of Cannabis Association (ORCA). Air Force, said he moved to Colorado in 2006 to use cannabis to ease the pain of injuries. “Consider each state to be a different country when it comes to their laws, amount of licenses issued, what the qualifying conditions are for entry into their medical program, as well as what the political climate and current illicit market looks like,” said Nic Easley, one of New Leaf’s market consultants.Įasley, a disabled veteran of the U.S. Legal market marijuana tends to be more expensive because supplies are more restricted and because it is taxed. In California, regulated market prices are more than $1,000 per lb, whereas prices for illegal weed can be as low as $500 per lb, estimated Scott Davies, a California cultivator. Legal pot prices are also impacted by supply and demand fluctuations in the illegal market, and the spread between the two can vary. (For a graphic on state marijuana laws and price differences, see: tmsnrt.rs/2AFalvZ ) Last week, spot prices for flower in Alaska were $5,496 per lb, while prices in Colorado and Oregon fell to historic lows of $1,008 and $1,166, respectively, according to New Leaf. Because it’s illegal to transport the drug across state lines, prices and available products vary widely in different regions based on whether a state has both medical and recreational markets and the number of licensed dispensaries and producers. commodity, sold legally and illegally for untold billions of dollars.Ĭannabis firms still deal almost exclusively in cash to avoid a paper trail or because they have almost no access to banks and financial services. The task is much harder for pot, and New Leaf’s experience stalking prices sheds light on the murky trade of what might be the fastest-growing U.S. The model is roughly based on S&P Global Platts, a firm where Rubin once worked that researches and publishes wholesale prices for crude oil, fuel and other commodities such as metals or agricultural crops. It has raised money from investors who want exposure to the cannabis sector without the risk of breaking federal law. New Leaf makes money from about 350 pot proprietors and other subscribers who buy reports and custom analytics. Started three years ago, New Leaf now publishes weekly benchmark spot prices and forecasts on wholesale indoor-, outdoor-, and greenhouse-grown marijuana for 17 regions with legalization laws. The problem spawned a different investment: The founding of New Leaf Data Services LLC, a Stamford, Conn.-based wholesale price data service that fields reporters to take on the steep challenge of cataloguing going rates. That left Rubin and Laird puzzled on the investment value of a dispensary, a weed farm or a factory making pot-infused candy. While a smoker may know the going retail price for “Strawberry Diesel” or “Buddha’s Sister”, the sector’s wholesale tier still operates much like a black market because of ongoing federal prohibition, despite legalizations in 30 U.S. FILE PHOTO: Employees prepare recreational marijuana orders for customers at the MedMen store in West Hollywood, California, U.S., January 2, 2018.
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