Bulk cannabis prices are plummeting across the United States’ recreational markets, according to data released by Cannabis Benchmarks. This division of New Leaf Data Services is a major provider of business, financial and industry data for North America’s cannabis industry.

In comparison with figures from October 17, 2017, wholesale recreational weed prices have slid more than 50 percent in Oregon and Washington this year. Two-digit declines are also noticeable throughout California, Colorado, and Nevada. The medical cannabis sector, however, seems to be maintaining its value.

Outdoor-grown cannabis prices hit historic lows

Based on the recent report by Cannabis Benchmarks, wholesale cannabis prices have not shifted in Arizona, Michigan and New Mexico over the past year. Prices for plants cultivated outdoors in Oregon, on the other hand, have never been lower. It seems that demand for outdoor-grown weed is dropping, with cannabis prices also falling in Washington state.

The Evergreen State boasted fabulous cultivation conditions this year, enabling producers to yield high-quality plants that didn’t really have any place in the oversupplied market. As a direct effect of this, wholesale cannabis prices nosedived and producers were forced to sell their plants for a loss. Last week, the cost of flower grown inside greenhouses in Washington was the lowest ever recorded in any market.

Drop in wholesale cannabis prices could be attributed to oversupply

Demand has shot up for adult-use weed in Colorado, with cumulative sales 12 percent higher in August of this year than they were in August 2017. Nonetheless, record demand has not prevented wholesale cannabis prices from tumbling. Statewide weed cultivators are struggling with oversupply issues. Had the mandatory pesticide testing not been enacted in August, there’s a good chance that cannabis prices would have plunged further.

California’s prime harvesting conditions this year meant that the Golden State had more weed than was necessary to stock the shelves of its dispensaries, many of which are still in the development stage. The state’s abundant fall harvest generally makes its way to the market after October. When this happens, it thrusts cannabis prices to annual lows. However, cannabis prices may not descend quite yet, due to the fact that the western U.S. state’s harvest probably won’t hit the market until November or December. Then there’s Nevada, where wholesale cannabis prices show signs of losing value after a fairly strong start to recreational sales in the Silver State.

Not every U.S. state has been affected by oversupply issues

In spite of license caps in both Arizona and New Mexico, the number of medical cannabis patients continues to soar. New businesses are not currently able to join the market – something that has effectively safeguarded these U.S. states from the oversaturation that has negatively impacted the majority of Uncle Sam’s recreational cannabis markets.