In the Northern White market, 100m fell by 1% this week while 40/70m fell. 30/50m prices remained flat, indicating continued limited demand. In the Permian, FOB Odessa 40/70m remained relatively flat this week, while local 100m and 40/70m continue to set precedent for quarterly lows.
In the Northern White market, 100m fell by 2% this week while 40/70m fell by 0.8%. 30/50 prices remained flat, indicating continued limited demand.
In the Permian, FOB Kermit
The industrial hemp market is rapidly transforming into a national commodity. This progression got a little bit clearer with the recent release of the U.S. Department of Agriculture’s (USDA) draft rules. These not only provided more guidance for farmers, processors and buyers working in this growing industry, but may also mean a significant new range of diverse job opportunities for senior executives right through to technologists and laborers.
According to S&P Global, Midland (Permian) oil differentials moved from an $8 discount in Jan ’19 to a $1 premium in October ’19 relative to Cushing (WTI) as a result of key midstream pipeline infrastructure projects taking substantial oil volumes from the Permian to the Gulf Coast, namely Grey Oak (online in 2020), EPIC, and Cactus II. This could be driving the trend in increased completions of DUC wells, as local prices improve and the logistical transition is made by truckers to haul sand instead of oil, providing temporary relief for in-basin sand prices on the demand side. However, will global macro-economics cap Permian oil prices at or near par with WTI and if so, could sand prices be projected to drop even further?
In the Northern White market, while pricing for 100m and 30/50m remained relatively flat, exhibiting intra-week price volatility, 40/70m prices fell. While prices remain flat, 40/70 appears to have slightly higher W/W price volatility in comparison with its 100m and 30/50m counterparts.
It’s the first harvest season since the 2018 U.S. Farm Bill was signed into law — and hemp farmers, investors and analysts are working the fields and crunching the data, working diligently to better understand the potential of the plant that was federally legalized through its passage.And while those experts are saying that the biggest lessons are yet to be learned, the fundamentals of a fledgling market are beginning to fall into place in the first state to fully regulate the plant and its intoxicating cousin, marijuana.
DENVER, Oct. 3 (UPI) — A glut of CBD oil on the market, severe weather and a complex harvesting process will make this year’s first mass hemp crop in 80 years in the United States a disappointment for many farmers. As harvest season winds down and winter frosts threaten the northern United States, hemp is proving to be a complicated plant for farmers to harvest and process. Buyers for the crop are tapped out, which is driving prices down, industry observers say.
It is officially the start of the harvest period, and the new crop is starting to make its way to the market. The price of biomass through the course of September has traded in the range of $1.95 to $3.50 per percentage point of CBD content per pound (/point). The amount of transactions occurring in the market is slow as the early harvested product is entering the market, albeit a small percentage of the full crop, and many extractors are searching for tolling and revenue split deals rather than large spot purchases.
We are thrilled to announce that @PanXchange has been shortlisted in the Best Pricing & Valuations Data Provider category at the #DMIawards by @ATeamInsight. Please consider voting — let’s show them how far the hemp industry has come!
How to Capitalize on Emerging Trends in the Legal U.S. Hemp Market, led by PanXchange CEO Julie Lerner and PanXchange Director of Hemp Markets RJ Hopp. We hope you learned a bit more about how to watch this new industry develop and how to analyze trends that can benefit your business. If you were unable to attend or would like to re-watch the webinar, you can follow the link below to access the recorded version of the webinar.