Hemp benchmarks and analysis session, view here.
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.
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:
The spot biomass market throughout July has been transacting in the range of $3.30 to $5.40 per percentage point of CBD content (/point). As we move closer to harvest, an interesting trend is emerging as quality biomass is still available from firms that have held physical positions since the 2018 harvest.
Hemp buyers and sellers face a number of challenges, some are the result of prior regulatory concerns and some are just normal for new commodities. Julie Lerner has made a career creating commodity exchanges is now focused on hemp. She speaks to Joy Beckerman about PanXchange’s Hemp Commodity Trading Platform and their Hemp Benchmark & Analysis.
Hemp prices have fallen some 80 percent since summer highs as the industry works through a glut of the crop. And while tumbling prices could be a boon for consumers in search of affordable hemp and CBD products, they bode poorly for farmers and businesses that have staked their futures on the burgeoning industry.
Federal agriculture officials have introduced two crop insurance programs for hemp, both designed to protect farmers growing the new commodity from damage during natural disasters.