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Chart: Too Much Weed In Washington State

Figuring out the delicate balance between supply and demand is a challenge for any emerging market. Washington State, which legalized in 2012, has been no exception.

According to the Marijuana Business Daily, licensed growers produced about 16,000 more pounds of marijuana than was sold in Washington State between July 2014 and November 2015.

Based on recent sales, the surplus is roughly equal to two months supply, which could result in the market being flooded as producers try to unload lower-quality inventory at bargain-basement prices. Such a significant surplus also exerts artificial downward pressure on wholesale prices - all of which could spell trouble for consumers unless the trend is corrected.

Check out the chart for more info on what the surplus looks like - and read MBD columnist Becky Olson's full analysis here.

 

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