Pulling Gold From Soil

THC distillate is one of the wonders of the rapidly emerging cannabis industry. It is the most pure and potent form of THC that is available market wide, and its applications are limitless. Seasoned smokers can purchase the oil alone with purity approaching 99% THC content for dabs just like any other concentrate. What sets this sticky oil apart is that when you refine it down it has almost no flavor or smell.

Oil that is ready for production or packaging today should have anywhere from 80% potency and up. The demand for this kind of oil has been historically consistent with pricing between $8,000 and as high as $10,000 per liter for the stronger stuff. While the demand has been steady, the supply chain from farm to manufacturer has seen a bit of a shakeup.  

A look at the supply chain 

The days of farmers throwing their THC-yielding trim into the river or into compost are over now that people know what it’s worth. The California Marketplace continues to fluctuate on a monthly and sometimes weekly basis. Trim is in ultra-high demand and prices are at an all-time high, hovering around $100 per pound plus or minus a few dollars for common outdoor trim. Crude prices remain steady between $4,000 & $5,000 per liter and distillate prices are starting to come down a bit but mostly stable between $8,000 & $9,000 per liter. 

What’s next? 

Supply and demand price pressure has affected mostly trim positively and flower negatively, but it is beginning to impact distillate as well. Distillate prices are expected to go down a bit more over the next several months and then most likely will rise again as the last of the 2018 outdoor and light dep material is processed. The Washington market has seen pricing level out between $6,000 and $8,000 for liters of distillate between 85-95% potency. The cannabis industry in California will likely follow the downward trend, and we expect it to bottom out around the same level as Washington.

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