A Price Index for Hemp Has Arrived Signaling A New Era Of Hemp As A Commodity For Trade: Hemp Benchmarks®
New Leaf Data Services, LLC (NLDS), the cannabis and hemp industry’s only independent Price Reporting Agency, has officially launched a pricing vertical for hemp called Hemp Benchmarks®. It is now collecting, assessing and reporting on the wholesale price of biomass, dry flower, clones, seeds, crude hemp oil, refined hemp oil and CBD isolate.
As hemp is considered the future for the cannabis plant as a global commodity, the launch of this platform is a major step in the right direction. This signals to Wall Street that the commodity is ready for prime time trading.
“With the passage of the 2018 Farm Bill last year, the hemp market is poised for massive growth with unprecedented interest from farmers, processors and consumers, fueled in part by the extraordinary demand for CBD-based products. Industry participants will be seeking price transparency to analyze and navigate what we believe will be a dynamic and chaotic market as the projected supply and demand for hemp and hemp derived end-products comes into focus over the next few years.” said Jonathan Rubin, CEO of NLDS. “We are pleased to offer the market another independent reference benchmark to support strategic, operational and investment related decisions.”
These new assessments expand NLDS’ portfolio of benchmarks, which include more than eighty weekly benchmarks covering the wholesale price of cannabis in legal U.S. and Canadian markets through its Cannabis Benchmarks® division.
“We expect volatile hemp and CBD markets until supply and demand reach an equilibrium,” noted Rubin. “Price Reporting Agencies play a critical role in managing risk associated with volatile markets, enabling buyers and sellers to transact with confidence, support fundamental analysis by investors and equity analysts, and provide definitive benchmarks for commodity traders.”