PanXchange Hemp Market Report April 2021Seth Boone, Vice President of Business Development with PanXchange, sheds light on incomplete, unfocused data on planted hemp acreages, increased efficiency creating higher yields, and if the potential for producers is best in distillates, smokable flower, or Delta-8 products.
Supply exceeding demand is a monumental problem for the industry as a whole.
Boone is not shy in stating this. When you discover what little data that is available is focused primarily on licensing, one can easily understand the difficulties in forecasting demands for planted acreages. Using methods that are both creative while remaining scientific and methodical, PanXchange has managed to find short-term variables that can be pared down into useful numbers. Information from retail estimates and other sources lean towards a slight increase in that projected demand. Factor in more efficient production and better yields; that increase seems minimal compared to the near doubling of the retail estimate to 3.5 billion.
Isolates are the safest and easiest to apply elsewhere
When asked about producers and products with the highest potential to eat up the oversupply in CBD, Boone says isolates, particularly broad-spectrum (which sees easier movement across state lines) and smokable flower, currently have the best outlook to clean up the excess biomass on the market. He also believes that lab-created Delta-8 needs to be taken off the table as there are far too many unknowns. Poison control centers in states like Texas, Michigan, and West Virginia have already issued warnings about the cannabinoid reaching sky-high levels of popularity. Particularly in regions where Delta-9 THC is still illegal, Delta-8’s unregulated and intoxicating effects are also gaining scrutiny and attention. We have certainly reached the point in this D-8 conversation that processors need to create a safe and viable product that can be leveraged as a private industry. Ideally, this needs to occur before a public health situation happens, birthing a window for overregulation and overreach within the hemp and cannabis space.
Industrial hemp gets a new trading platform
As the US increases its abilities for hemp textile production, the demand for hemp oils and hearts is also ramping up in the food industry, including a push in agriculture for hemp-based livestock feed. In light of all this, PanXchange is launching a new trading platform for industrial hemp to go with its benchmarking services. Hemp’s use as building materials and in bioplastics, and innumerable fiber and grain applications, one can imagine the potential to dwarf the cannabinoid markets. Gaining more and more attention, this market isn’t going anywhere and is more than deserving of a platform that encourages communications between hemp buyers and sellers in a mature and standardized market.
Tune in to the podcast to meet the new vice president of PanXChange, Seth Boone. Listen in as he discusses what producers need to focus on in the mainstream CBD markets, what to do about the current oversupply, and his thoughts on the hot topic of Delta-8 tetrahydrocannabinol.