Per our September newsletter, efforts are underway to obtain federal funding to grow the hemp industry. Rank the following in order of importance:
Most growers and processors are in harvest now, and so far, yields are coming in better than expected judging from the few early reports we have collected. Naturally, prices have dipped slightly with the expectation of more biomass coming to the market. Most bids for 8%-10% material are in the $1.20-$2.00/lb range ($0.15-$0.20 per point CBD) in Colorado and Kentucky. $2.00 to $3.00 is still possible in states less burdened by oversupply, and trade volumes for crude and isolate have returned to normal after the rumored Delta-8 processor relocation. Therefore, PanXchange stands by its prediction that prices for quality 2021 biomass will rally after harvest. The extent of that rally depends entirely on when stored supplies return to the market.
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The Ministry of Agriculture in Kenya projects a surplus of 12 million bags of maize by the end of August which is expected to lower the prices for millers and in turn the price for maize flour.
Food inflation in Kenya is at a 14 month high of 8.8% as higher prices in cooking oils, beef and bread have been a result of disruptions in production due to global lockdowns in many producing countries.
Due to the lack of quality maize in the Kenyan market, a 2 kg pack of flour is now retailing above KES 100 compared to the average of KES 90 in May this year.
Overall, biomass markets are trading at steady prices yet again month over month. Colorado prices have seen a short-term decline in the higher end of the range to $0.20 per point of CBD ($2.00/lb for clean milled 8% material), but the low is holding steady at $0.1875 per point CBD for clean material. We expect this price drop to be short-term as a shake-up in delta-8 processing capacity has resulted in excess isolate trading into the CO market, but overall processing capacity should return to normal soon.
Despite the wildfires, smoke and drought conditions ravaging forests, grassland and farmland across the western United States this summer, hemp biomass pricing ranges have held relatively steady nationwide. This is testament to the fact that despite a substantial drop in licensed acres as well as preliminary estimates of total planted acres this year, the market is still heavily oversupplied and is easily able to buffer major supply shocks such as natural disasters.