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February 2020 Hemp Price Update: Prices are still Falling

Before we go over where the industry standard is, it is important to note that the industry is still strong, but oversaturated. It seems the only way to make it is through strong relationships, efficient supply chains, and a product that is truly different or well known.

Fide Freight is proud to say that we are working closely with some of the biggest companies in the industry and through our partnerships, we have created those efficient supply chains, strong relationships between both the shipper and consignee, and helped our customers be different.

Here is the Data for January:

CBD Biomass

Small Quantity: Low $0.80 High $2.40 Average $0.90 – $1.10 

Large Quantity: Low $0.40 High $1.50 Average $0.80 – $1.00

CBG Biomass

Low: $10.20 High: $21.00 Average: $10.00 – $12.00

CBD Flower

Low: $65 High: $424 Average: $250-$275

 

How will new regulations impact prices?

There are a few factors to consider when predicting the future of CBD prices. If the federal or state governments start to change the rules of what is considered hemp, then it could have a direct impact on pricing.

For example: if the federal government decides to test based on TOTAL THC, then the supply will decrease. This will result in a price increase.

If the federal government decides to change the rule to 1% delta 9, then the supply will increase. A lot of farmers will be able to enter the market and produce higher potency CBD. This would most likely increase the supply and drive the price lower.

Trends that will impact the prices

Everyone who grew Hemp plants for CBD this year were mildly disappointed to say the least. They expected a payout that was much greater than the one they are faced with today. With that said, we have heard a lot of talk about farmers deciding to switch to a new strain to try and cash in on higher pricing. Our prediction is that these markets will soon become over-saturated as well. With over-saturation comes more competitive pricing to sell the product.

We believe that trends will only be profitable in their infant stages. If you try and enter during the climb, then you will only be another victim of an overly competitive market.

Suggestions?

It seems clear that the price will decline as more states enter the market. The best way to beat your competitors is to find a way to differentiate yourself. Find something that you can make your own. It is also important to have strong relationships with reputable company’s. This will not only help you network for new clients, become reputable yourself, but it will help sustain long term business.

Thank you for reading.

*DATA IS BASED ON OPINION AND SMALL SAMPLING. 

Jon Wilcox

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