- The Liv-ex 100 fell 1.9% in October, closing at 369.24. Year-to-date, the index is down 12.0%.
- Further declines across the major indices dispelled hopes that the market found its bottom last month.
- Among the top price performers in the Liv-ex 100 were wines from France and Italy.
*made using the Liv-ex Charting Tool.
September saw a slight lull in the decline of the Liv-ex Fine Wine 100. However, October brought a more rapid fall, with the index ending at 369.24, -1.9% month-on-month. Year-to-date, the index has experienced a 12.0% drop.
Looking at the broader market, the Liv-ex Fine Wine 1000 (which tracks 1,000 wines from around the world) declined by 1.4%, a decline steeper than the previous month’s 1.0%. The Champagne 50 saw the most significant decline among the sub-indices of the Liv-ex 1000, dropping by 2.5%. The only sub-index to see an increase was the Rest of the World 60, which rose by 0.2% in October.
The Liv-ex Fine Wine 50 (which tracks the movement of First Growths and is updated daily) dipped by 2.1% month-on-month, a more significant decline compared to September. The Bordeaux 500 (which tracks 500 leading Bordeaux wines) decreased by 1.5%, surpassing the 0.8% decline recorded in September.
Buyers currently have the upper hand; wines within the Liv-ex 100 traded on average 3.05% below their Market Price in October compared to just 1.73% below in September. Trading value increased in October, as did the number of monthly transactions on the exchange. Market breadth also kept steadily expanding, with 2,243 individual labels (LWIN 11s) trading on Liv-ex last month. Last week was the third highest in terms of number of transactions and active traders this year, signalling that buyers are taking advantage of the record amount of offers available on the exchange, and that some sellers are adjusting to lower prices.
What’s driving the index?
September recorded a well-balanced performance within the Liv-ex 100. However, October brought along a notable imbalance, with the majority of wines experiencing price declines – 64, to be exact. Only 26 wines saw their price increase, while 10 remained stable month-on-month. In October, the top performers were mainly from France and Italy. Pol Roger, Sir Winston Churchill 2013 recorded the most significant increase in its Mid-Price, rising by 7.0% month-on-month.
Regionally, Bordeaux had 29 wines inside the index experience price declines, in contrast to just eight that saw gains. Some of the top Bordeaux performers included Château Haut-Brion 2010 (+6.8%) and Château Ducru-Beaucaillou 2019 (+5.0%). Pétrus 2019 also had a better month, increasing by 5.0% and reducing its year-to-date decline to 22.5%.
Italy had a challenging month, with eight Tuscan wines experiencing price declines, compared to only three wines that either increased or remained stable month-on-month. In Piedmont, three wines recorded declines and two saw their price increase.
Younger wines saw some of the biggest falls in value. The 2019 vintage continued to struggle, with five wines among the bottom ten performers in the index belonging to that vintage, including Château Lafleur 2019 (-8.0%), Château Cheval Blanc 2019 (-6.6%) and Sassicaia, Tenuta San Guido 2019 (-5.9%).
Which wines performed best in October?
*prices shown are Liv-ex Mid Prices; the mid-point between the highest live bid and lowest live offer on the market. These are the firm commitments to buy and sell at that price; transactional data rather than list prices. It represents the actual trading activity of 620+ of the world’s leading fine wine merchants. Because Liv-ex doesn’t itself trade, this data is truly independent and reliable.
As previously mentioned, the best-performing wines in the Liv-ex Fine Wine 100 were primarily from France (Champagne, Bordeaux, Burgundy, Rhône) and Piedmont. Champagne was represented in the top five with two wines: Pol Roger, Sir Winston Churchill 2013 (+7.0%) and Taittinger, Comtes de Champagne Blanc de Blancs 2011 (+5.8%).
Pol Roger, Sir Winston Churchill 2013 was released at £1,920 per case and has since seen its Market Price drop to £1,750 per case. The wine received 97 points from Antonio Galloni (Vinous) and 96 points from The Wine Advocate.
Pol Roger, Sir Winston Churchill 2013 trades on Liv-ex
What is the Liv-ex 100 index?
The Liv-ex Fine Wine 100 Index is the industry leading benchmark. It represents the price movement of 100 of the most sought-after fine wines on the world’s most active and liquid marketplace from France, Italy, USA, Australia and Spain. Stretching back over 20 years, the Liv-ex 100 is quoted on Bloomberg and Reuters screens.
All Liv-ex indices are calculated using our Mid Price; the mid-point between the highest live bid and lowest live offer on the market. These are the firm commitments to buy and sell at that price; transactional data rather than list prices. It represents the actual trading activity of 630+ of the world’s leading fine wine merchants. Because Liv-ex doesn’t itself trade, this data is truly independent and reliable.
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