The Liv-ex 1000 fell 1.35% in March, extending its losses back to October 2019, the same month 25% US tariffs were enacted on most European wines.
The Liv-ex 100 and Fine Wine 50 also declined last month, with the latter hit the hardest (-2.2%).
Currency rates were a key stimulus of trade this month. Sterling bounced around, releasing months of gains against the Euro and Dollar before strengthening at the end of March. Its volatility can be best seen intra-day, affecting the Liv-ex 50, but over the month, its weakness allowed UK merchants to hold prices while Dollar, Euro and Swiss Franc buyers took advantage.
Within the Liv-ex 1000, the Italy 100 managed to maintain its level (+0.03%). The Italian index has seen a one-year return of 3.9%, which places it as the outright leader in Liv-ex 1000 sub-indices performance. Merchants across the globe report a keen interest in the recent releases of Barolo 2016 and Brunello 2015.
Champagne’s yearly return fell below zero this month. Some new vintage releases from the region have been held back due to the difficult market environment, while the considerable volumes of those already released, that would usually be absorbed by the market without difficulty, have instead put some pressure on prices. Doubtless a good opportunity for those without the allocation to accumulate.
March also saw marginal downward moves in the Rhone 100 (-0.4%) and Rest of the World 60 (-0.5%). The biggest decline was for the Bordeaux Legends 40, down 2.03%.