Recent trading activity
Ahead of the release of Promontory 2018, the market has seen increased activity in the wine’s back vintage, including 2014, 2011 and 2009.
After the burst of interest in Bordeaux 2020 at the back end of last week (AG in bottle scores released on Thursday), this week has seen the focus turn to the 2019 vintage, taking 22.5% of Bordeaux trade, as commentary from the Southwold tasting continues to be released.
There has also been increased trade in Kei Shiogai 2020 wines led by Kei Shiogai, Pommard, Le Poisot and Kei Shiogai, Bourgogne, Pellans,
What are tight markets and why are they important?
Tight markets are characterised by a small difference between the bid and offer price. Abundance of buyers and sellers and intense price competition on both sides lead to tighter markets.
For instance, at the time of writing, Château Mouton Rothschild 2019 has a bid at £2,685 and an offer for £2,765 per 6×75. This small difference (2.97%) between the buying and selling increases the chance of both parties reaching an agreeable trade price.
Tight markets are usually the most liquid. Wines with narrower spreads are more likely to attract buyers and sellers and therefore, high trading volumes.
Tight markets can also be facilitated by market makers, who provide market liquidity by constantly quoting bid and offer prices for a select group of wines.
The tightest markets on Liv-ex
Active wines like the Super Tuscans, Bordeaux’s First and Second Growths and leading Champagne labels often have the narrowest spreads.
Among the Super Tuscans, Sassicaia 2018 currently has one of the tightest spreads. The LIVE bid for the wine is at £1,175 against the LIVE offer at £1,249 per 6×75 – a 6.3% spread.
The wine last traded at £1,200 per 6×75, but all formats, including magnums and double magnums are enjoying activity.
Sassicaia 2018 trades on Liv-ex
As a Liv-ex member, you can explore the tightest markets at any one time under the Opportunities tab on the platform and enjoy a more efficient trading experience.
Liv-ex analysis is drawn from the world’s most comprehensive database of fine wine prices. The data reflects the real time activity of Liv-ex’s 600 merchant members from across the globe. Together they represent the largest pool of liquidity in the world – currently £80m of bids and offers across 16,000 wines.
