Below is the part of a weekly series of benchmarks provided by the team at Cannabis Benchmarks®.
Statistics Canada just released data showing both unpackaged and packaged inventory for May 2020. The trend of expanding unpackaged inventory continued, but May saw packaged inventory buck the trend with a small decrease.
To get more insight on production and inventory, we turn to data reported this past week in quarterly earnings released by Canopy Growth and Tilray. Both companies, but especially Canopy, experienced significant supply-demand disconnects through much of 2019.
The supply-heavy imbalance has continued into 2020 for Canopy, while production and sales for Tilray have lined up more closely since the end of 2019. Inventory – reported in terms of C$ by both companies – has flatlined in 2020 for the two LPs. However, our guess is that inventory volume has continued to grow, but falling market prices are reducing its value.