Recent trading activity
Looking at trading activity from Friday through to Wednesday this week, Bordeaux has solidified its dominant trade position, now accounting for 39.8% of total trade by value. Château Lafite Rothschild and Château Margaux have been particularly active.
Buyers seemingly have a taste for Champagne, as four wines from the region featured in the top ten most-traded wines by value since last Friday: Bollinger R.D. 2008, the 2008 and 2013 vintages of Dom Pérignon and Louis Roederer Cristal 2008.
Tuscany seems to be the biggest loser from Bordeaux’s rise over the week, experiencing a dip to 6.6% of total trade by value after ending last week at 10.4%.
Which Italian wines are trading below Market Price?
*Made using the Charting Tool
The Italy 100 index stands out as the current most resilient index among the Liv-ex 1000 sub-indices, having only declined by a modest 3.7% year-to-date. Even in July, the index demonstrated remarkable stability with a marginal decrease of 0.4%. By comparison, the Liv-ex Bordeaux 500 has declined 6.5% year-to-date and the Rhône 100 has had the worst year-to-date performance, declining 16.4%.
However, despite this stability, certain instances reveal that the wines within the index are not completely immune to broader market trends. Some of these wines are currently trading below their Market Price, and buyers can reap the rewards of sellers adjusting their prices, even for the biggest brands in the region.
Italian wines consistently maintain an active presence in the trading landscape. Even amid the current market downturn and the more pronounced declines observed in other indices, more individual Italian wines (LWIN11s) experienced trading activity in July compared to June. This uptick in trading underscores the sustained interest in these wines, albeit at the right price.
The table below highlights the wines that have traded below their Market Price in August:
Among the wines featured in the Italy 100, Masseto 2011 has traded the lowest below its Market Price in August. This wine has recorded an 11.1% year-to-date decline, one of the most substantial drops within the last ten vintages of Masseto. Simultaneously, the 2010 vintage has also been trading below its Market Price. While it has experienced a 7.3% year-to-date decrease, it demonstrated stability in July by maintaining a flat trajectory.
Both the 2010 and 2016 vintages of fellow ‘Super Tuscan’ Tignanello are currently trading below their Market Price. The latter stands out as the sole instance of a positive year-to-date performance growth for Tignanello. The wine even recorded a rise in price performance from June to July, the only vintage out of the last ten to do so. Despite this promising momentum, the 2016 vintage is currently trading at an 11.0% discount relative to its Market Price.
These scenarios underscore the potential for buying opportunities, where wines from the biggest Italian brands can be acquired below their Market Price. Evidence of stability from some vintages which saw a resurgence in their value in the last month indicates the downturn may not be long-lived, so time might be of the essence to capitalise on current opportunities.
There are currently 1,166 LIVE bids for Italian wines on Liv-ex. Log in to the exchange to view them and trade.
In case you missed it:
Here’s what we’ve been reading:
- Liv-ex: La Place Autumn Releases 2023 – What to expect
- Decanter: Bordeaux: Hopes rise for 2023 harvest but mildew leaves mark
- Financial Times: Stagflation in the UK: what does the latest data mean for the economy?
Liv-ex analysis is drawn from the world’s most comprehensive database of fine wine prices. The data reflects the real time activity of Liv-ex’s 620+ merchant members from across the globe. Together they represent the largest pool of liquidity in the world – currently £100m of bids and offers across 16,000 wines.