We’ve launched the cannabis industry’s first commodity trading desk. Using a proprietary version of commodity trading software the company developed, the desk connects buyers and sellers for the purchase and sale of raw cannabis materials including hemp biomass, THC flower, THC trim, CBD/THC crude
“We created a more efficient exchange for buyers and sellers by solving two critical problems,” said Grupo Flor CEO Paul Henderson. “Buyers are sourcing raw materials from an array of entities and many of the products are inconsistent and unreliable. On the flip side, these sellers don’t have the support and logistics infrastructure to efficiently sell and transport their product. We believe this trading platform is a win-win for the entire industry.”
The desk was initially introduced in the California THC
Grupo Flor Co-Founder Gavin Kogan added, “We’ve been working on this behind the scenes for some time. As California’s THC market continues to explode, the desk will be instrumental in facilitating trades and moving physical goods around the state via our licensed warehouses and transportation network.”
How it works
All suppliers and buyers listed on the desk are heavily vetted based on their growing sites, manufacturing processes, management, licensing, and compliance with only the most qualified partners being introduced into the network. Once a partner is approved, the desk works with buyers to find the appropriate supply they need or the desk works with sellers looking to move large quantities of raw materials through the buyer network.
The desk has the ability to enter into contract growing arrangements on behalf of buyers or to simply fill spot-market orders. Traders host weekly conference calls with buyers and sellers to discuss pricing trends among products in different markets. Sales data is logged for the eventual creation of futures contracts.
Grupo Flor recruited two full-time traders with international commodity trading and food/cannabis broker experience, with plans to add additional traders in the short-term.