The average price of CBD isolate in the U.S. has weakened since early June and is now at the lowest levels since reporting began in 2019. This occurred despite licensed hemp acreage more than 80 percent below 2019 levels, per Hemp Benchmarks.
In early August, FDA rejected two new dietary ingredient applications for food products that contained full-spectrum hemp extract, citing a lack of sufficient data about CBD safety and efficacy. FDA also noted that CBD is an active ingredient in a prescription drug, so it should not be available over the counter.
This decision is seen as bearish for the CBD industry, which continues to be burdened with oversupply: FDA certification for CBD products would give legitimacy and likely a demand boost to the ingredient on a national level.
USDA’s Agricultural Marketing Service is seeking permission from the White House to conduct an annual hemp production survey to give the public a clearer picture of general hemp supply and demand.
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