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Talking Trade – a truce is called

The EU and US called a long-term truce on the tariffs related to Boeing and Airbus earlier this week, putting a halt to the 17-year dispute.

In October 2019, 25% tariffs were put on EU wines as part of the quarrel. They remained there until March of this year, when a four-month suspension of the tariffs was agreed upon. The new agreement extends that suspension for an additional five years. A complete timeline of the dispute can be found at Reuters.

Major releases

This week, many 2020 Bordeaux wines released well above the 5.3% average price increase observed in the first four weeks of the campaign. Depending on the performance of their 2019s since last summer, however, some manage to look better than others.

Some of the wines with the biggest price increases on their 2019 releases so far are highlighted below:

There are currently over 100 Bordeaux 2020 wines with active markets.

Les Carmes Haut-Brion 2020 and Carruades de Lafite 2020 have been the most traded wines by value on the secondary market so far this campaign.

Weekly trade

Italy’s market share by value hit 23.5% this week, its highest level so far this year.

Italian sub-regions Tuscany, Barolo, and Bolgheri all took equal parts of that share, and combined for more than 75% of the country’s trade.

The US was the biggest buyer of Italian wines this week and the 2016 vintage dominated traded by value and volume.

Bordeaux saw a small decline in its market share but not to the levels seen in May. Additionally, multiple back vintages of wines released throughout the week saw trade.

Château Lafite Rothschild 2014 was this week’s top traded wine by value. Lafite Rothschild 2010 also joined the ranks slightly further down the list, but at a much higher last trade price.

The 2014 vintage was highlighted recently in the release post on Lafite Rothschild 2020 because it looked good value. The 2010 also fell slightly below the fair value line.

Lafite Rothschild has been the only First Growth so far to release its 2020 wines.

Our Bordeaux En Primeur 2020 page contains everything you need to know about this year’s campaign. You can also sign up for our daily En Primeur email alerts using the form below.