Winds of change in the fine wine market?
28th July, 2014 by Rupert Millar
The Liv-ex Fine Wine 50 has held steady for the past few weeks and July is set to be one of the strongest months of trading this year – are things finally looking up for the fine wine market?
Liv-ex noted on its blog that “good engagement” from its members was likely to make July the second strongest month of trading so far this year – a good result in what is one of the quieter parts of the year though also indicative of the generally lacklustre trading conditions at present.
Last week’s share of trade by value was still dominated by Bordeaux but its share was below 80% – again reflective of the wider market’s trend.
Burgundy though was up to 11% with Champagne and Italy the next strongest performers.
Bouchard Pere et Fils 2001 Romanée was the week’s leading wine by value, taking 8.3% of the total value, the rest being 2009 Mouton, 2003 Latour, 2011 Lafite and 2010 Margaux.
By volume meanwhile, 2005 Lagrange Saint Julien (at £465 a case) was the leading label, taking 6.2% of the total, with 2008 Duhart Milon close behind on 6%.
Sassicaia’s 2009 also saw “good activity” and it took third place for trade by volume.
The fine wine market has been in free fall for over a year now, month after month of decline, weighed down by by the wavering fortunes of Bordeaux (a situation at least partially attributable to the Bordelais themselves).
There have been other encouraging signs of late too. The market for “under-the-radar” Lafite such as the 2011s is strong and there is increasing value in non-first growth 2009 Bordeaux as its price declines.
There may be no immediate “sea-change” but, perhaps, there are “signs of optimism”. We shall have to wait and see.