One of the big problems with 2005 futures could be the following as pointed out in a comment in my blog by Karl Mark of Geneva, Illinois:
"I seem to think that the US retailers will be the ones who take a hit on the 2005 Bordeaux. With future prices as they are the retailers will not be able to mark up prices as they have done in the past. Pontet Canet futures for $77...what is the retailer going to sell this for?? I'm not paying $80-100 for Pontet in my local wine shop. I'm very curious to see how the 2006 growing season is shaping up. October is only 4 months away..."
Karl’s point should be well taken. Sure, the negociants in Bordeaux are selling to their customers around the world as well as those selling to distributors and retailers in the states. But what happens if the sell through to the consumer is not what it should be?
It would mean that the distribution route would have one massive pile up of 2005 futures. Some US importers I have spoken to say it’s already happening. (It could eventually mean customers cancel orders with Bordeaux negociants or do not pay bills in September for futures.)
However, one good point is that 2005 is a great vintage. So the wines will inevitably find a home and should one day be consumed…even if the futures sales are not a success.
Massimo Marinucci — Pound Ridge, NY — June 14, 2006 9:54am ET
Stephen Hawkes — healdsburg, CA — June 14, 2006 10:16am ET
James Suckling — — June 14, 2006 10:23am ET
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William Clay — Atlanta, Georgia — June 14, 2006 11:00am ET
R Scott Hudson — June 14, 2006 12:16pm ET
Thomas Parker — Huntington Beach, CA — June 14, 2006 12:26pm ET
Tom Glover — The Woodlands, TX — June 14, 2006 4:43pm ET
Chris Seiber — Newport Beach, CA — June 14, 2006 7:35pm ET
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Michael Myette — Sacramento, CA USA — June 17, 2006 4:53pm ET
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