The Canada Cannabis Spot Index was assessed at C$5.93 per gram this week, up 0.3% from last week’s C$5.91 per gram. This week’s price equates to US$2,059 per pound at the current exchange rate.
An increasing number of Canadian cannabis cultivators are shifting production capacity to outdoor growing, which is a significantly lower cost endeavor than indoor or greenhouse production.
The latest data from Statistics Canada shows 544 hectares licensed for outdoor cultivation as of August 2020, up 134% from the first time that such data was reported in October 2019. Indoor production capacity has largely leveled off in the same period.
Outdoor cultivation does have risks. Canada’s climate allows for only one annual harvest, which can be lost to inclement weather. Still, the amount of production capacity licensed could conceivably produce a tsunami of additional flower and other plant material that may overwhelm already-inflated supply levels in Canada’s legal market.