Exposure on Liv-ex – the total value of live bids and offers – continues to reach record highs. The current level is roughly £47.5 million, a £2.5 million increase since our post three weeks ago announcing the new record.

Encouragingly, not only is a lot of this exposure being placed in the form of bids, it’s also being placed across a spectrum of markets, rather than just Bordeaux.

The chart below shows two years of the bid:offer ratio across two of Liv-ex’s most important regional indices, the Bordeaux 500 and the Burgundy 150. The data is averaged over a seven day period to remove some volatility.

Two years ago the secondary market for Burgundy was not as active it is now, and consequently the bid:offer ratio languished below 1, other than during Burgundy En Primeur campaigns. Currently the ratio stands at 2.3, higher than the Bordeaux 500’s ratio of 1.8, demonstrating not only that the demand for Burgundy remains strong but also that confidence in the secondary market for this region has developed.

This increased demand is reflected in price changes. The Burgundy 150 has increased 11.1% year-to-date as the ratio has climbed. At the same time the gradual subsiding of the bid:offer ratio within the Bordeaux 500 coincides with the weaker price growth for the region, which is up 5.7% in the same period.

Bid:offer ratio – Burgundy 150 and Bordeaux 500