If you happen to see a great deal on the cannabis collection in stores, it is time that you grab it as soon as possible. For the year 2019, the discounts for the latest harvest aren’t as good as the ones provided last year.
Generally, this is the time of the year when the surplus amount of cannabis that has been grown outdoors, enters the market. When this surplus supply meets a standard demand, the prices start decreasing. However, this year, the story is far from the one told last year. A variety of factors such as supplies, legalization, amped demand, as well as weather has led to a limit on the annual collection of the outdoor weed supply.
Adam Koh, the Editorial Director for Cannabis Benchmarks, mentioned that this particular year is different for the cannabis market. This year, the demand for cannabis is driving the wholesale prices as opposed to the market supply.
For the past two years, the Southern Humboldt region was termed as a sorrow-packed place with people walking around devastated, mentioned Kevin Jodrey, a grower and industry pro in the California-based Humboldt County. This year though, the region has completely changed and now it is more of a seller’s market. A sense of proper normalcy has been restored with proper prices for cultivated marijuana.
In a sense, this year isn’t going to be some bonanza for the customers as it was during the 2018 harvest. It will reflect a price pattern the same as that of summer sales. The buyers won’t be getting ounces of weed at $40 like the previous year. This newfound cycle for price volatility in Cannabis makes it a part of a broader form of the agricultural economy. As noted by Koh, the history of the US agriculture sector has always been comprised of endless crop surpluses, bankruptcies, price crashes, and even price stabilization.
Over the past 25 years, cannabis price has dropped down significantly from its peaks back in the 90s. However, these prices have surely seen short spikes every now and then. This year is one of those spikes for the cannabis market.
According to Koh, when you own a crop that is currently valued at its highest possible price tag, you will surely see people trying to acquire it for resale. This is turn increases the market price of the product. However, the market for cannabis is surely volatile but roughly predictable, as well.