Most derivative products for CBD experienced single digit price drops from the previous month. CBD Distillate – THC free saw a $80 / kilogram price decrease placing the average price at $811 / kilogram. There has been a significant decrease in acres planted and more farmers will end up growing staple commodities this year over the risky hemp crop. These variables will not effect the derivative market until the fall or even 2023 when the crop inventory from 2021 starts to run low. Pair this Hemp Benchmarks reports that financial filings from Charlotte’s Web and cbdMD indicate that retail sales of CBD are stagnant, inventories of unsold products and inputs to manufacture them are significant and we anticipate the downward trend to continue.
The CBG market has historically marched to the beat of a different drum compared to the CBD wholesale market. However, the downward trend in wholesale pricing for CBG derivates followed the CBD market. CBG isolate was down 6% from last month with the price dipping below $1,300 for the first time.
Again, we believe that with lower prices, the market is poised to expand through increased consumers. Affordability will be the path toward widespread consumer adoption.
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