What’s happening in the market?
Screaming Eagle, Oakville Cabernet Sauvignon 2021 is the top-traded wine of the week so far, buoying the US to a 6.2% share of traded value.
Across vintages, Petrus is the top-traded wine overall, with six different vintages changing hands. There are live offers on every vintage from 2000 to 2021, with magnums, double magnums and imperials available alongside regular pack sizes.
Today’s deep dive: bid:offer ratios of the Liv-ex 1000
In the January Market Report, we reported on changes to the Liv-ex 1000 and Bordeaux 500 sub-indices’ bid:offer ratios by value. In December, ratios had increased across the board, but in January, for the most part, fell back to their November levels. So far this month, many have made back some of their losses.
Sentiment for the Italy 100 continues to creep upward, with prices following suit. The index was the only one to make gains in January, up 0.6%. The Burgundy 150, while still carrying one of the lowest ratios, has also seen some consistent upward movement.
Value vs. volume
While these value ratios serve as reliable temperature checks on market sentiment, they can be influenced by wide spreads – sellers holding their offers unrealistically high and buyers keeping their offers too low results in lower ratios. A wide spread between a bid:offer ratio by value and bid:offer ratio by volume indicates a disconnect between buyers and sellers. Both have different ideas of the right price. A convergence should mean that buyers and sellers are on the same page – both finding value at a given price point.
In January, the Liv-ex 1000’s bid:offer ratio closed at 0.26 by value and 0.31 by volume – the narrowest spread since February 2022. Both ratios are low – the market remains bearish, and there still exists a surplus of stock – but buyers and sellers appear to be aligning their expectations, resulting in an uptick in trades. Compared to December, traded volume was up 37.0%.
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 620+ merchant members from across the globe. Together they represent the largest pool of liquidity in the world – currently £100m of bids and offers across 20,000 wines.
