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Well finally, a futures contract I would not mind
taking delivery on !!!!!!!!!!!!!!!!! {;-)
Ray
<BLOCKQUOTE
style="PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
----- Original Message -----
<DIV
style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black">From:
Daniel
Goncharoff
To: <A title=realtraders@xxxxxxxxxxxxxxx
href="mailto:realtraders@xxxxxxxxxxxxxxx";>realtraders@xxxxxxxxxxxxxxx
Sent: Friday, October 19, 2001 12:09
PM
Subject: [RT] Wine Futures
10 October - The combined Paris, Brussels and Amsterdam
bourse,Euronext, has started trading its wine futures contract, Winefex,
afterits launch date was postponed due to the September 11 terrorists
attacksin the US. The publicly quoted exchange said it is trading between
fiveand 10 lots a day at around 38 euros a bottle, and that it
expectsactivity to pick up over the next two months. The contracts
for fine Bordeaux wines en primeur - which are deliveredin November two
years after the grape harvest - run for 28 and a halfmonths from the July
prior to the relevant harvest, giving scope forhedging and speculation
based on late summer weather conditions. Winefex futures contracts
cover three price bands of fine red Bordeauxwines, including Graves, Saint
Emilion and Saint Julien, with eachcontract traded for five cases of 12
bottles of 75cl. Although twoLondon-based companies, WorldwineXchange and
Bordeaux Wine Index, haveunveiled plans to launch wine derivatives,
Winefex is the only contractcurrently available.Sam Mezrahi, head
of business development for Winefex, told RiskNewsthat while most of the
business has originated from French wine traderskeen to hedge their
positions, a few contracts have also been bought byGerman brokers. He
added that French and English specialist fine wineretailers have also
expressed an interest in the derivatives contracts,as have French
retailers such as the supermarket chain Carrefour.Mezrahi admitted
that although the contracts lack liquidity, sufficientvolatility is
present. “Hedge funds have expressed an interest in usingWinefex but they
want to wait two or three months to get a feel for theproduct,” he
added.Potentially, airlines could be the largest users of the
contracts.“Initially we thought that airlines such as Air France - which
buys upto 50,000 bottles of wine a year - would benefit from using Winefex
forhedging. But since the September 11 terrorist attacks, I think
airlineshave other issues on their minds,” said Mezrahi.Paul
LyonBack to main headlines© Risk Waters Group,
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