CBD Glut

The market is still trying to find equilibrium.

About 65% of U.S. hemp farmers lack a buyer for their crop this season, leaving them few alternatives, according to a July survey by Whitney Economics. Hemp has less infrastructure than other crops, so farmers cannot rely on selling their crop to a local grain elevator.

“People entered in on speculation,” said Chase Hubbard, hemp commodities analyst at The Jacobsen, a price reporting agency. “The results could be tragic for some small farmers.”

The 2018 Farm Bill coincided with a boom in the market for food, drink and cosmetic products laced with CBD, an industry that Wall Street firm Cowen & Co has estimated to grow to $16 billion by 2025.

Enticed by projections that hemp would bring $750 in profits per acre – well above the $150 or less from a typical acre of soybeans – farmers placed their bets on a crop that had been illegal for most of their lifetimes.

Last April, as farmers planted, a pound of hemp biomass sold for about $40. Now, as farmers harvest and take their crops to market, the same amount sells for $18-$25, according to PanXchange, a commodities platform.

11 Responses to CBD Glut

  1. dad29 says:

    Well, now.   Hemp looks a lot like weed, so why not sell it to the Mexican Mob?  They really don’t care what their customers get.

  2. MjM says:

    To paraphrase, a medical scam is born every minute.

    Carpetbagger: Your young friend could use some help. This is it, one dollar a bottle. It works wonders on wounds.
    Josey Wales: Works wonders on just about everything, eh?
    Carpetbagger: It can do most anything.
    Josey Wales: [spits tobacco juice on the carpetbagger’s coat] How is it with stains?

  3. Merlin says:

    Retail topical products run in the general neighborhood of $90 an ounce, so somebody is making money on it.

  4. jjf says:

    Dad29, you crack me up.  You have a lot of experience with the devil’s lettuce, do you?  Think that the people who are buying it and smoking it don’t care what they get?

  5. Jason says:

    > You have a lot of experience with the devil’s lettuce, do you?

    Boy, if that were a requirement to comment here, we would never hear from you, Pat, or Leroy.

  6. dad29 says:

    Well, Jiff-a-Roo, there are several dozen dead or near-dead kids throughout the USA who did NOT care what they ‘smoked’ in their vapes.

    Likely true that there are at least several hundred (or thousand) more who inhaled the same stuff but did not suffer the same fate.

    And finally:  I am nowhere near as experienced with MaryJane as you are, Jiffster.  Two drags, about 50 years ago……..

  7. Le Roi du Nord says:

    Well j, if that were the case it would surely eliminate you, k, mar, and dud from spewing  any more nonsense. Guess there is a silver lining in that cloud.

  8. jjf says:

    No need to malign the Mexican mob when you can find tainted vapes being made by the thousands per day right here in Kenosha.

  9. Pat says:

    “ Boy, if that were a requirement to comment here, we would never hear from you, Pat, or Leroy.”

    Idiot!

  10. Jason says:

    Haha, two out of three asshats couldn’t help but respond in all their finest. They make it so easy.

  11. Paul says:

    Don’t worry, Jason. Because Pat called me an anti-Semitic slur and Owen kept it up, Owen is going to be unemployed soon.

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