THCA Hemp Flower Prices Maintain Parity with Cannabis in Several States

LOS ANGELES- A new report by Hemp Benchmarks, shared with Green Market Report, indicates that wholesale prices for THCA hemp flower have maintained parity with cannabis in several regulated adult-use state markets, positioning it as a competitive alternative.

In May, the average wholesale price for THCA hemp flower was $922 per pound, surpassing prices in seven states, including major markets such as California, Colorado, and Michigan. Despite this, the price dropped by 10% from April, with indoor, greenhouse, and outdoor grown THCA flower all experiencing month-over-month declines.

The report highlights that, despite the decline, THCA hemp flower remains significantly more valuable than other hemp flowers. “THCA cultivators are able to attract prices three times the average price of CBD flower,” it states. Additionally, “THCA remains a high-margin product popular among consumers.”

Jonathan Rubin, head of Hemp Benchmarks, noted that the rise of autoflower hemp strains could further impact THCA flower prices and those across the cannabis spectrum. Autoflower hemp, which begins flowering based on age rather than light cycle changes, is gaining popularity due to improved genetics. This development allows for potentially multiple harvests per summer, increasing supply.

Rubin speculates that the recent price drop could be due to several factors, including lower demand, higher supply, or increased adoption of autoflower seeds. “As more and more autoflower hits the harvest, most outdoor growers can have two to three harvests per summer,” he explained. This faster turnover could lead to older inventory being displaced by new harvests.

Regulatory uncertainty around the upcoming Farm Bill is also influencing the market. Rubin mentioned that growers might be selling current inventory quickly to avoid potential losses if regulatory changes occur. “The Farm Bill could kill our entire business by the end of the year or before the end of the year,” Rubin said. “So, part of it may just be, ‘Hey, sell the product now, we don’t want to be stuck with inventory or leave money on the table.’”

While Hemp Benchmarks does not currently track autoflower seed prices separately, Rubin hinted at potential future coverage due to their increasing adoption and higher prices. “Every seed producer that I’ve spoken to that has both traditional seeds and autoflower says that autoflower is selling more,” he noted.