RJ Hopp, Director of Hemp Markets at PanXchange, spoke with Kristina Etter, editor of Cannabis Tech, in the first episode of a new, joint-monthly podcast, “A Tech Moment: PanXchange Hemp Market Report.”
Futures, forwards, cash markets, spot markets, derivatives…. Let’s get the lingo right and get to some more sophisticated price risk management in @PanXchange markets! Customs of the trade-in both PanXchange markets is to negotiate a fixed price contract regardless of how far into the future the actual delivery is.
The “building its ship as it sails” hemp industry is no stranger to operating amidst uncertainty – and it’s probably fair to posit that the tragic COVID-19 crisis has saddled the young industry with more of the same as hemp growers, just like the rest of us, navigate shelter-in-place orders, closed borders, and a healthy dose of “should I even grow a crop” in 2020 questions.
The firm covered various topics ranging from regional spot prices (biomass, crude oil, distillate, and isolate), to legislative updates such as changes in the USDA Interim Final Rule for hemp producers.
The significant macroeconomic factors of the past weeks have, not surprisingly, taken their toll on the US fracking market. In the Permian, the FOB Kermit 40/70m tight supply scenario is over, with prices down by almost 15% this week.
As the corona virus continues to cause major disruptions in the global economy, Kenya announced travel restrictions for travellers from countries that have confirmed cases of COVID-19 along with the closure of schools and gatherings in public.
In the Permian, FOB Kermit 40/70m supply remains tight, with prices moderately increasing by 1%. Meanwhile, FOB Kermit 100m prices fell by $1 per ton.
Attesting to speaker quality and experience, over 80% had PHD’s. This year a Quality Summit was added to address important new issues within the evolving industry, including quality assurance, research, innovation, and safety. Key presentations included:
In the Permian, FOB Kermit 40/70m supply remains tight, with prices moderately increasing by 1%. Meanwhile, FOB Kermit 100m prices fell by $2 per ton. Unsurprisingly, we heard anecdotally last week that the market had been quiet (even for Permian sand).
Farmers cheered when hemp was legalized nationally for the first time in decades. But more than a year later, differing state regulations and law enforcement’s unfamiliarity with the plant are complicating efforts to capitalize on the crop.