PanXchange® Hemp: Benchmarks & Analysis – Nov 2019

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.

PanXchange® Sand: Benchmarks & Analysis 11.11.2019

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?

PanXchange® Hemp: Benchmarks & Analysis – Oct 2019

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.