PanXchange’s July hemp benchmark report was published on Wednesday. If you have been following this space you will not be surprised to learn that hemp prices remain depressed. Low prices for biomass and hemp-derived products reflect the overhang from last year’s harvests and processing. With reliable or official information about this year’s crop largely unavailable, the industry has to just wait and see what materializes.
Over the last few years, hemp has received plenty of fame for its potential environmental impacts that come from its 2018 legalization. Researchers are continuously taking on the challenge of proving how much water, pesticide, and other ecological requisites it takes for a farmer to cultivate hemp; however, one must not only consider the plant itself but the full lifecycle of the plants’ end product. Once the plant has left the farm, and in this case, turned into hemp plastic, where does it end up?
Hemp has all the makings of a competitive ingredient in animal feed, but the industry has significant legislative hurdles to clear before widespread adoption.
Food is essential to all things living, yet the pure scale of the many industries that directly influence its supply chain tends to go unnoticed. The U.S. agriculture industry, including feed grown for animals, contributes more than $1 trillion annually to the U.S. Gross Domestic Product (GDP). The U.S. and China are by far the two largest consumers and producers of animal feed in the world. Animals in the U.S. alone consumed more than 230 million tons of feed in 2016, which resulted in approximately 52 billion pounds of livestock and poultry protein. And the market is growing. “The U.S. animal feed market is expected to grow at a CAGR [compound annual growth rate] of 2.40% … to reach $83.663 billion in 2024 from $72.568 billion in 2018,” according to Research and Markets.
Meet the finalists, including Julie Lerner, our CEO, and Founder, in DBJ’s 2020 Outstanding Women in Business awards program.
Rig platforms are often in remote locations with harsh, dangerous environments and limited resources for human operators on site. That is what makes them the perfect environment to implement robots, according to robotics researcher Anders Røyrøy at Equinor. There is also less to worry about with respect to social distancing in the age of COVID-19.
Widely viewed as a primary source for market reports and intelligence in the hemp industry, PanXchange (Denver, CO) Director of Hemp Market, RJ Hopp, is seeing and hearing more lately about a surge in smoke-able hemp flower demand.
The Hoban Minute
Bob and Eric sit down with CEO of Panxchange, Julie Lerner to discuss the basics of how to define a commodity, the 7 stages of maturation, the import role a commodity exchange will play in the growth of the hemp industry, and what to be excited about as the industrial hemp industry continues to mature and become commoditized. Hoban Law Group created The Hoban Minute to get closer to our network, highlight the many voices that make up this multifaceted global industry, and provide a broader perspective on cannabis, hemp, and marijuana international markets. Contact Hoban Law Group for all your cannabusiness legal needs.
In this episode, Justin sits down with Alex Meleshko, Manager of Frac Sand at PanXchange to discuss Commodity Trading and Physical Commodity Markets with Alex Meleshko. Alex also talks about how his recent marriage and move to Denver during the COVID-19 epidemic.
Last week, PanXchange hosted a webinar titled “The Forward Contracting Hemp in an Oversupplied Market.”
The session, which will soon be available to the public, covered many aspects of price risk management, including fixed-price transactions, crop insurance, sales contracts, and various legal issues regarding contract terms.
No one will be surprised to learn that the price of CBD-hemp has stayed in the basement, resisting any pull upward as the industry works through the 2019 crop inventory while new harvest beckons in the not too distant future. According to its June Hemp: Benchmarks and Analysis, the spot commodities trading platform PanXchange says it expects the new crop to be about the same size as last year’s supply.