Oregon Has an Oversupply of Marijuana, Most Goes Unsold

Oregon Has an Oversupply of Marijuana, Most Goes Unsold

Oregon Has an Oversupply of Marijuana, Most Goes Unsold

Commentary: The Oregon cannabis market is very much over-saturated. For consumers, this is great. One can walk into nearly any Oregon dispensary and find buy a gram of quality ‘bud’ for $5.00, and even concentrates are dropping in price. When the state began legal recreational sales in Y 2016, a gram of butane hash oil (BHO) wax or shatter went for a minimum of $40.oo in most dispensaries.

These prices were justified by the scarcity of flower, since concentrates require a lot of raw materials to refine.

But now that everyone’s had a chance to get in on the growing business, and bulk flower is readily available, the price of concentrates has taken a deep dive.

One can now find a full gram of BHO for $25.00  at any reasonably priced dispensary, and  for even less for the adept bargain hunter.

Now 2 of the 1st states to broadly legalize marijuana took different approaches to regulation that left Oregon with a vast oversupply and Colorado with a well-balanced market.

In both states the prices of marijuana have plummeted.

An Oregon report by law enforcement found nearly 70% of legal marijuana grown goes unsold, while a state-commissioned Colorado study released Thursday found most growers are planting less than 50% of their legal allotment and still meeting demand.

Oregon has a vast number of illegal marijuana grows competing with the legal market. But, in both states retail marijuana prices have fallen by about 50% since Y 2015.

The information offers case studies for California and other marijuana-friendly states as they ramp up their legal markets.

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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