Hemp flower has demonstrated a seasonal pricing trend for the last two years.  As inventories dwindle, or consensus builds on the decline of key inventories in the marketplace, prices increase.  As harvest commences, prices decline in the wake of growing inventories.  Indoor production has an impact on the seasonal trend, if only helping to avoid wider pricing swings. 

This cycle is driven by the perception of market participants and represents a decline in the quality of flower inventories, rather than any shortage of hemp flower.  Large inventories of flower have persisted since 2019, with that year’s carryover, additional 2020 crop, and now, new crop. Increases in indoor production have contributed to inventories of premium craft flower. 

California’s newly authorized markets have the potential of further…