The Liv-ex November Market Report has been published exclusively for members on our Silver package or above. The following is an extract.
*data taken on the 7th of November 2023. The FTSE 100 was last updated on the 31st of October. The Liv-ex Fine Wine 50 is updated daily.
In September, the market briefly paused its decline as merchants returned from summer holidays. However, the downward trend resumed in October, with the Liv-ex Fine Wine 100, the industry benchmark, dropping by 1.9% to close at 369.24. The Liv-ex Fine Wine 50, which tracks First Growths, also fell by 1.4% month-on-month (note: this index is updated daily).
Looking at the broader fine wine market, the Liv-ex Fine Wine 1000 dropped by 1.4% in October, surpassing the 1.0% fall the month before. Year-to-date, the index has fallen by 11.7%. These movements contrast with other financial indices which recorded gains in October, such as the S&P 500 (+1.3%) and the Nikkei 225 (+5.5%).
With prices falling across the board, the ball is currently in the buyer’s court; wines within the Liv-ex 100 traded on average 3.1% below their Market Price in October, compared to just 1.7% below in September. Some have been making the most of this downward-trending market; trading activity increased in October, as did the number of monthly transactions on the exchange. Market breadth continued to expand steadily, with 2,243 individual labels (LWIN11s) traded on Liv-ex last month.
The market’s price correction continued, with trade value increasing in October despite general price declines (as reflected in major indices taking a hit). The indices’ individual components have shown volatility, pointing to a lack of confidence within the market. One year on from the start of the downturn, will end of year festivities and critics’ yearly roundups be enough to lift the market?
The full report contains additional Liv-ex research and analysis:
- All major Liv-ex indices fell last month – the Rest of the World 60 bucked the trend and rose by 0.2% again, buoyed by Californian wines.
- The Wine Spectator’s Wines of the Year are having their usual impact on the market, causing a flurry of trading activity surrounding the selected wines.
- Technical analysis of the Champagne 50 finds that its long-term bullish trend is still intact.
- Ten years on, we looked at the 2013 Burgundies rescored by Neal Martin.
- And finally, we explored how trade prices fare in a downward market.