Market Volatility – CBD Isolate Price Crash

Market Volatility has investors questioning the future of CBD Isolate.

Did the price crash for CBD Isolate?

While total demand market is still on the rise for bulk CBD isolate, some speculations have shown an eminent price crash bigger than Q2 of 2019. In May 2019, the hemp industry experienced a pricing crash like never seen before. Over the course of 45 days, the average cost of bulk CBD isolate dropped 30%. When you take into consideration the price inflation that existed from the beginning, the drop is not as significant.

The Effect of Price Fluctuations

Price fluctuations like this impacts farmers, processors and product manufacturers in different ways. When a farmer has harvested their supply for the season, they don’t have the ability to hold out and sell high. Hemp biomass, like most all agricultural crops, is perishable. Processors can adjust their costs depending on the demand for their services. When bulk hemp biomass needs processing and a company can only process so many pounds of hemp in a certain timeline – they have the upper pricing hand.

Daily the supply of CBD available to the market is growing steadily. New businesses are entering the market, and existing extractors scale up their operation. For the first time in the short nationwide market of wholesale CBD, there is a surplus of CBD material, including CBD Isolate.

There has been claims that this is in part because the demand for CBD has decreased. However insiders are not seeing this but instead seeing a steady increase, just not as exponential as the CBD supply increases. Micheal Gordon co-CEO at kush.com stated “The days of CBD isolate shortages and huge margins may be gone, and never coming back.”

Forecast for 2019

When the 2019 surplus of hemp biomass hits productions, the cost could drop as low as $3.50/lb. This is very speculative and most likely does not consider the failure rate of the high percentage of first year growers. From another perspective that bottom price speculation is still twice the value of tobacco crop per acre.

This market like any other fluctuating one, will eb and flow with supply and demand. Total available hemp biomass material will double when the 2019 crops are harvested and it seems like an over-supply is destined to happen. However, I like to think of it as growing pains of the industry. Hemp biomass has many more end product potentials than CBD isolate; manufactures will begin to step up their processing ability.

The volatility of these profit variables isn’t holding industry experts back. Growers with several years of “hemping” experience don’t seem to be too worried about what the futures market holds. Their confidence is solid in this crop.

One security is that none of this has affected the retail prices if CBD products. They still are holding strong with no sign of letting up. This says a lot about the future of hemp derived bulk CBD prices. While there are no guarantees in any industry, hemp is far from crashing and CBD will continue to take the lead in profitability.

Best Prices on 99% CBD Isolate

To view competitive market pricing on CBD Isolate – visit our partner site kilodealer.com


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