PanXchange produces indices for physical commodities to bring price discovery and key market intelligence to thin and/or nascent sectors. As a service to the US hemp industry, PanXchange publishes nine monthly price assessments for Colorado, Oregon, and Kentucky on the last Thursday of each month.
Biomass markets continue to bifurcate between two markets: 1) the market transacting at fair market values dictated by supply and demand; 2) a market rife with desperate sellers and opportunist buyers. Because of this fragmentation, recent transaction prices vary widely. In general, homogenized biomass prices have continued to soften, with prices across the country firmly at or below $1 per percentage point of CBD. Nontheless, the bid/ask spread has narrow since last month as product has been forced to move and buyers and sellers found common ground.
With this November newsletter, PanXchange is launching a series of survey questions for market participants. If you are a grower, processor, end user, or trader, please visit our website to answer these quick questions listed below. Results will be aggregated anonymously and reported in our December newsletter.
Colorado winterized crude oil market has transacted between $850 and $1,600/kilogram, while tolling arrangements continue to be a prominent deal structure with regard to initial extraction. The spread between non-winterized crude and winterized crude continues to narrow as winterization capacity increases throughout the country.
The Colorado CBD isolate market traded in the range of $2,000 to $4,000/kilogram in October, while the full spectrum distillate market has seemingly traded in parallel with isolate as distillation becomes more cost-effective. The Colorado full-spectrum distillate market transacted between $2,100 and $4,000/kilogram, while THC remediated, broad-spectrum distillate continued to garner a significant premium of approximately $1,000/kilogram.
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.
The spot biomass market throughout August has been transacting in the range of $2.73 to $4.50 per percentage point of CBD content (/point) as supply from the 2018 crop year is sporadic and early season crops are being harvested. The trend of biomass selling near the lower end of the range has continued from July, as those who are holding product from the 2018 have incentive to sell before large quantities of product enter the market from the 2019 crop year. Instances of this trend have increased in the last few days, depicting the eagerness to move product and exit positions.
The PanXchange Industrial Hemp trading platform is officially going live on August 1st!
PanXchange will be in attendance at the USA CBD Expo at the Miami Beach Convention Center (August 2nd – August 4th). Not only is the CEO of PanXchange, Julie Lerner, moderating a panel, but PanXchange will be at booth #616 throughout the event. If you are attending the conference or local to the area, we encourage everyone to stop by!
PanXchange produces indices for emerging commodities bringing price transparency, price discovery, and key market intelligence. We acquire pricing information by conducting surveys with vetted and anonymous market participants and make expert assessments based on a variety of factors. We will publish monthly spot biomass assessments for Colorado, Oregon, and Kentucky, with plans of expanding crude, distillate, and isolate reporting as well as additional regions.
We would like to start this month’s newsletter with an update on PanXchange. At the end of April, PanXchange began on-boarding top-tier market participants onto the trading platform. This phase of the launch is to allow our market-makers a period of time to get comfortable negotiating online and building liquidity. We’re thrilled at how quickly these members took to online negotiations as we already have over $75 million worth of hemp products available for negotiations. For more information on PanXchange’s industrial hemp market, please reach out to the team at hemp@panxchange.com.
The spot biomass market has seen consolidation between the Colorado, Kentucky and has generally transacted in the range of $3.30 to $4.50 per percentage point of CBD content (/point) throughout April. At this point, hemp producers have either sold out of product or are holding positions, expecting prices to rise during the summer months. Although it is foreseeable that the biomass market could reach the mid $5/point range this summer, there has been increased reports about biomass quality degradation leading to questions on best practices for post-harvest storage.