Liv-Ex Market Report
by Liv-ex.com, January 2011
2011 got off to a running start. Buyers greeted the new year with enthusiasm.and a generous appetite for top Bordeaux. With traders' fingers firmly on the button, monthly exchange turnover rose 120 per cent year on year and eclipsed turnover in December by 21 per cent. As a result, all of the Liv-ex indices registered healthy gains. Vintages from 2005 onwards inspired the heaviest buying last month, with the 2006 and the 2008 accounting for just under a third of trade. The most traded brand in terms of volume (by some distance) was Mouton Rothschild, which appears to have strengthened its foothold in China. Elsewhere, Haut Brion and Lafite continued to see voracious buying, along with Pichon Lalande and Lynch Bages. January was another month of Bordeaux-centric trade, with the region commanding 95 per cent of turnover. The Rhone failed to make much of an impact, whilst the exceptional 2009 Burgundies have yet to reach the secondary market. On the upside, wines from Down Under saw increased demand, just in time for Australia day.
(more analysis in the full report)
This month's major movers board is dominated by Mouton and Haut Brion, both of which continue to see heated trade on the exchange. The much-admired 1995 and 1996 vintages piqued traders' interest, with both looking good value compared to more recent offerings. Beychevelle 2006 also makes an appearance this month, as it continues to benefit from its strong following in Asia. Cristal heads up the second table, which shows the top five non-Bordeaux brands traded by value over the past 12 months. The 2002 vintage played a large part in the brand's overall performance, emerging as the year's most traded non-Bordeaux wine by both volume and value. Sassicaia also saw pronounced demand and pushes ahead of DRC and Penfolds into second place.
Final thought — Haut-Brion
(analysed in detail in full report)
Stephen Tanzer's January report on the "splendid and alluring" 09 vintage sees near on 140 Burgundian wines achieve 95-point status and above. According to Tanzer, the 09s vary in style and quality, though the best examples are "wonderfully silky..fully ripe...with a rare level of fleshiness and compelling sweetness of fruit". Whilst the majority of the 2009s provide immediate drinking pleasure, the top offerings also have the potential for long-term ageing. Jancis Robinson, it seems, is also sweet on the 09s. Like Tanzer, however, she cautions that strong demand from new and established markets may prompt sharp price rises. Below is a selection of the critics. best-loved wines.
Despite the hype surrounding the Rothschilds, Chinese labels and ex-chateau auctions, the best-performing First Growth over the last six months has actually been Haut Brion. If we analyse the price movement of the last ten physical vintages (31 Jul to 31 Jan) we find that that Haut Brion is showing an average price move of 27.7 per cent, beating Mouton, at 25.4 per cent, into second place. Whilst Lafite prices started to flag in the latter part of 2011, Haut Brion pushed on. The potential for future outperformance also looks strong, beloved by both the trade and critics and presumably possessing a broader consumer following than Lafite.
(Charts and analysis in full report)
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Final thought — Haut-Brion