The long, sliding downward trend of CBD & CBG bulk products seems to be coming to an end… for now. If you are in the hemp industry, you have probably felt disheartened about the steady decline of product prices. Crude oil, distillate, and isolate in both CBD and CBG form have fallen more than 30% just from November 2020 to January 2021, at a rate of over 10% per month. The demand for extracts did not meet the oversupply, and coronavirus only worsened the gap. In 2014, a kilo of refined CBD oil could be sold for nearly $70,000, according to several analysts. The same volume is being sold today for as little as $750, marking a -9233.33% decrease.
The cannabis industry is already filled with legal roadblocks, gray areas, and learning curves, not to mention the rollercoaster prices of CBD & CBG. The good news is that the industry is slowly but surely maturing, and the growing pains seem to be tapering off.
The latest February pricing for CBD and CBG distillate showed the first positive uptick we’ve seen in months. While prices aren’t as high as they were in the Fall of 2020, there is a glimmer of hope for feminized hemp farmers and extractors trying to make a return on their investment.
CBD distillate prices fell to nearly $500 per kilo in January before making a decent recovery this month. CBD isolate prices have kept on the downward trend, but crude oil has maintained relatively consistent pricing over the past four months.
While CBG prices didn’t fall as much as their CBD counterparts in the new year, distillate prices seem to be improving and will hopefully level out in the coming months.