Business

Marijuana Prices Trending Upward as Summer Hits

Customers shop at a Cookies dispensary in Commerce City.
Customers shop at a Cookies dispensary in Commerce City. Jacqueline Collins
Colorado marijuana prices are making their traditional summer climb, according to data from the state Department of Revenue.

The DOR's latest market rates — median wholesale prices for different categories of unprocessed marijuana — show that several types of pot products experienced modest to significant cost hikes from April to June, with marijuana flower, trim and plant matter allocated for extraction all becoming more expensive.

Marijuana flower's median market rate only increased $1 from April, and now sits at $1,309 per pound. However, industry representatives and wholesale cultivators estimate that the average price (not the median) is closer to $1,500 per pound, with some of the most popular and in-demand cultivators charging nearly $4,000 per pound.

Even if the median market rate doesn't show a big incline, seasonal trends and prices at the dispensary almost guarantee higher prices until October, when annual outdoor harvests take place — which makes the intense growth of marijuana flower allocated for extraction even more eye-raising.

According to the DOR, the median market rate of marijuana flower allocated for extraction — typically used for higher-quality concentrates — has jumped about 42 percent since April, from $525 per pound to $901. The median market rate of marijuana trim increased almost 17 percent in the same span, from $354 to $425 per pound, while trim allocated for extraction also saw a slight bump, at around 6 percent.

Prices for marijuana seeds, clones and whole wet plant matter all stayed relatively flat, DOR data shows.

Despite signs pointing to high hash prices, dispensaries are currently bracing for 7/10, a marijuana concentrate-inspired celebration on July 10. The day, essentially a 4/20 for hash heads, is full of sales on extracted products, and dispensaries are already advertising price cuts and bulk deals. 
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Thomas Mitchell has written about all things cannabis for Westword since 2014, covering sports, real estate and general news along the way for publications such as the Arizona Republic, Inman and Fox Sports. He's currently the cannabis editor for westword.com.
Contact: Thomas Mitchell