When Will the Price Per Point Rebound?

CannaBusiness
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Good Morning everyone,

There has been a lot of speculation on the falling price of CBD Biomass and Smokeable Hemp Flower.

Wanted to see what the community thinks about it? Do you think that this is a simple supply and demand process? Will the price rebound soon or will we have to wait awhile for some people to leave the market?

My thought on it is that it will rebound in the winter. I don’t think there are too many people in the market, just a lot of product that flooded the market at once. I am thinking late December to Early January is where the price will begin to climb once again.

Again, let me know your thoughts! Any unique theories?

This article has a graph I put together with some interesting data. (this is my opinion).

Cheers!

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There are a TON of farmers holding out for February to sell their crops hoping that the price will rise by then. It would be a good strategy if there weren’t so many farmers doing so. There are also a lot of processors are already having trouble moving extract as fast as they can make it. Some are exclusively doing paid tolling until they can move what they already have in their overstocked inventory. I don’t see biomass prices rising as long as extract prices remain so cheap, and I think we still have a way to go before extract prices bottom out.

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It grows in a field :man_shrugging:t4:

Uruguay is rumored to be selling at $200/kg isolate.

We haven’t been playing with economies of scale yet tbh. It’s just gonna go down and down and down.
Hi

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Interesting point @coppertop

Do you know why processors are having problems?

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@tweedledew ,

Do you think that more buyers would be in the market by then? I can’t imagine it being that extreme…?

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Probably because there’s still a bunch of 300mg tinctures on the market going for $40 retail. None of the big CBD retailers are dropping their prices, even the ones that are vertically integrated. Supply is still way over demand at this point all the way down the chain.

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It would be interesting to see what changes in the near future. I still think the price will rebound soon because there will be less supply to produce finished products. Just staying optimistic!

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What I have seen, CBD disty is leveling out… seems like the price of everything in the supply chain has gone down cept the end product that retail stores are charging. Im going to look at 40K pounds of biomass tomorrow to process… Same guy is sitting on flower waiting for the price to go up…

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There’s a few threads around here on supply/demand.

There’s way too much supply. There’s also little in the way of potential for export (it’s legal in the E.U. and grown cheaply there).

Demand will have almost no way to catch up unless every man, woman and child starts taking a couple hundred mg per day.

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It will never go up again.

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Interesting. Are there any other uses for biomass other than consumption?

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I also think there is a little bit of a trend going on with CBD, and I think demand may actually drop.

They are up selling CBD at every gas station near me. It reminds me of fidget spinners as far as how many people are pushing it.

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Grow quality flower

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Lots of threads around. But it can be made into ethanol at scale, hempcrete, fiber etc.

CBD is also a good building block to convert into other cannabinoids :man_shrugging:t4:

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There’s been talk of hemp plastic, dunno how realistic that is.

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yes, we are accumulating quite a bit of oil. Gonna start looking for a second job.

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This is why I’m making d8, d10 and CBN from cbd.

Everyone has a ton of cbd laying around, it’s a saturated market

Not everyone has high potency cbn, d10 or d8 yet

More are catching onto d8, itll be the next to become saturated

Cbn takes a little chemistry to make so itll take a while longer

Unless I open source my high yielding cbn SOP :wink:

This will be the year of CBD sythesis

“What can we make cbd into that’s more valuable?”

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I’m not in the CBD game but from the outside looking in, it seems like retail is choking you guys. You’re seeing falling prices but retail still has not gone down much. Example, I have lots of friends and acquaintances that have tried CBD. How many actively use? NONE. Because the price just isn’t worth it. Who wants to pay $50 for a 450mg tincture? Or $20 for 200mg bag of CBD gummies(what every smokeshop around me sells).

Another great example…my grandma was visiting a while back staying at my moms house. My extremely conservative mom asked me where to get some CBD. She knows I’m in the industry but I had to explain to her I don’t deal with CBD…so I googled a CBD shop and sent her there. She ended up spending $110 for some pain cream. That was 8 months ago.

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Indeed treu but let s see how the public and FDA and DEA will embrace those cbd derived compounds
Interesting times

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Over time the drop in oil prices will trigger a drop in finished CBD prices. The industry has had a couple of good years as far as margins go.

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