Is it a natural market adjustment, a reaction to a flooded market or an industry bracing for weaker value of its one and only commodity?
The strength of Colorado's marijuana prices, wholesale specifically, is fading like a curl of smoke.
Wholesale prices, just a year ago in the per-pound range of $2,400, have dropped to around $1,100-$1,200.
A recent Business Insider article cites the reason for this drop being a flooded market. "As growers ramp up production," the article states, "the huge amount of marijuana hitting the market in Colorado is causing a 'steady decline' in wholesale prices regardless of demand.”
Large growers, many of whom operate without "canopy limits," or restrictions on the amount that can be grown, are inundating the market and affecting retail pricing.