Cannabis market price is stable but California recreational weed may cost high.
Folks in the cannabis industry fear that cultivation, production and retail regulations could drive up the price of weed just when consumers are able to buy in stores without a doctor's recommendation. In January, recreational weed sales for those 21 and older are expected to mark a new era in California. But it could be hard enough for old-school growers and producers to jump through new regulatory hoops that supply won't match demand.
"The first quarter of next year, prices will probably go up,"
- says Jonathan Rubin, CEO of New Leaf Data Services LLC
On top of that, Californians probably can look forward to deep discounts for weed this fall harvest season. Rubin believes that growers will dump product on the market to raise the cash needed to become compliant in 2018. And those operators who just can't jump over the hurdles to become legit might put all their weed on sale for the last time, he says.
According to his firm's 2017 Mid-Year Wholesale Market Report Overview, the price of Golden State outdoor cannabis is down from $1,542 per pound in the first six months of 2016 to $1,133 for 2017. And the price could keep moving south until recreational cannabis hits stores in January.