California Market Report For May 2020: The Search Is On For Processing Material

By Confident Cannbis, provided exclusively to Benzinga Cannabis.

Our sales data and conversations within the industry show that edible sales are way up during the COVID-19 crisis. What is more interesting about edible sales is that the biggest performer seems to be cannabis beverages, a category that was having a really hard time gaining market share pre-COVID. The High on Our Own Supply podcast interviewed three different retail companies across California and each went into greater detail as to how and why beverages are a hot category for them.

As a result of the dominating edibles category, there’s a huge search going on right now for processing material. Trim and B-bud demand are higher than ever while the supply isn’t as strong because it’s not the time for outdoor crop harvest season when the market is typically flooded with cheap and abundant plant materials. Due to the high demand, bulk process material prices will rise until harvest. Interestingly, low-quality trim for processing is still quite affordable, trading at a rate of $7-9 per % point of THC.

By The Numbers …
Overall, flower is trading at an average of $1,710/lb

Indoor flower is trading high at $2,412/lb, with an average potency of 23.4%

Outdoor flower is $1,247, with an average potency 22.4%

Trim: $208, potency 8%

These numbers are higher than what we see in MJBiz/Cannabis benchmarks, and they include retail-ready prices and bulk listings, but they could be more real-time than those other sources.

In HOT Demand
If you are a cultivator or distributor sitting on a stockpile of trim and b-buds currently, it’s the right time to get that product moving immediately. 

Current social distancing rules mean cannabis operators must do business online. Vendors and buyers need to find new relationships without being able to meet or view products in-person. Confident Cannabis is the perfect solution to do business in this environment. We are 100% online, and our inventory is guaranteed to be tested by licensed labs with high-resolution images to help you make purchasing decisions when in-person quality inspections are not an option.

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