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US (MI): Why cannabis prices hit a record low in July?

Legal market marijuana prices in Michigan reached historic lows in July, propelling the second-largest sales month since adult-use legalization in 2019. The average price for an ounce of marijuana flower was $79.70, according to data from the Michigan Cannabis Regulatory Agency. Total adult-use sales totaled $286.4 million, trailing only the record sales month in March at $286.8 million.

Adult-use marijuana prices have fallen nearly 14.5% throughout 2024 after a sharp increase throughout the summer and fall last year, likely due to increased enforcement to stamp out illicit product in the legal market. The previous basement for the average price for flower was $80.16 in January 2023.

The price decline this year could be caused by a variety of reasons, including product oversupply, pricing compression from "Croptober" preparations and a continued supply of illicit market product in the state's regulated market.

More plants were being tended to throughout the year, leading up to the July sales figure, which could also impact pricing. In January, there were 1.3 million plants being grown in immature, vegetative or flowering states. That figure climbed to 1.7 million in June, meaning more product was likely to hit the market in July.

Read more at crainsdetroit.com

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