Talking Trade – Winter headwinds

By December 20, 2019Fine Wine Market, Talking trade
  • Champagne – Most active
  • Top performers of 2019
  • The impact of tech
  • What is the Market Price?

The Liv-ex 50 – The First Growth Index – maintained its level this week, moving intraweek due to Sterling volatility surrounding elections and Brexit uncertainties. Trade by both value and volume rose, reflecting an uptick in buying from Asia.

Burgundy’s share (19.9%) drifted from near record highs last week, while Bordeaux clawed back its share, but still remains well below its year-to-date trade share (54.4%). Champagne more than doubled its previous week’s share of trade by value and Italy held steady against its yearly average.

That being said, for Champagne and Italy it’s not all bubbles and cheers. Just as the regions were realising the benefits of being omitted from the 25% US trade tariffs, the US proposed a new set of tariffs on all EU wines – still and sparkling – which are being met with active lobbying by the US wine trade.

The most active wines this week were a sparkling bunch. Champagne houses, Krug, and Moet & Chandon made the top five, joined by a Brunello, Bordeaux, and Burgundy. The top champagne was taken by Krug, Grand Cuvee Edition 167 (97 JS), which was released in June at a price of £1,350 per 12x75cl and is currently trading marginally lower.

The 2016 vintage was the most traded by value this week. This is on trend, as 2016 has been the most traded vintage nine months out of the year so far.

Top performers of 2019

You’ll barely recognise this year’s list compared to 2018. The top performers of 2019 are a reflection of the regions that steadily gained momentum throughout the year. The list, originally included in the Liv-ex summary of the year 2019, can be read through in a quick snapshot blog, here.

The impact of tech

There was a record number of active wines in 2019. A manifestation of both the broadening market for wine and increased engagement among wine merchants. Find out how Liv-ex technology is facilitating this movement here.

What is the Market Price?

Ever wondered how Liv-ex derives the Market Price of wine and the science behind it? This brief article describes what it is, how it can be used, and where to find it.