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market report

Liv-ex is an electronic exchange for fine wine used by professional merchants and collectors. Each month Liv-ex publishes a detailed Market Report analysing fine wine prices and trends in the marketplace. The Market Report is part of a package of data and services offered to subscribers of Liv-ex, with subscriptions starting at £39.95 per year.

Below is just a brief extract from the latest Market Report. An extract will be offered on wine-pages as soon as it is published each month, but for the full report and Liv-Ex's extensive services, sign-up with them at www.liv-ex.com

Liv-Ex Market Report
by Liv-ex.com, August 2005

Trading
Activity in August was steady with all regions and vintages in play. The en-primeur hangover of July seemed to have cleared as merchants engaged in what they do best- trading wine! The UK trade in particular was in a buoyant mood (between overs). Turnover was up 10% month on month and 7% year on year. Stock held by the leading UK merchants fell 6.3% while the Liv-ex 100 rose a robust 3.3% for the month..



Breaking down August's trade by region, we saw Bordeaux inch back up toward its 2004 average and Burgundy continue from where it had left off in July, while Champagne bubbled. The Burgundy trade was centred round the top growers of 2002. There seems no end to the demand for this highly rated vintage. It is as though 2003 never happened.
(more analysis by region and tables in the full report)

Major Movers
The table below shows the major movers, month on month, in August. Perhaps the most interesting point of note, are the relatively small moves to the downside. This is the result of the strong demand (SIPPS?) that is emerging for top wines, r educing concern amongst merchants and negociants as regards their overall stock levels.


(the featured wines are analysed in detail in full report)

Critical Corner
It seems it was only yesterday that we were taking an in-depth look at Bordeaux 2004 and yet all the chat now is about 2005. Harvesting has just begun in the Médoc (Léoville Barton on Tuesday and Cos d'Estournel on Thursday), but has already concluded at Haut Brion, where picking began at the end of August. James Suckling of The Wine Spectator visited Bordeaux last week and tasted Haut Brion where Jean Delmas (the recently retired head winemaker and a man whose career in wine has spanned 60 years) said that he had never seen such wonderful grapes in his career. The normally restrained Christian Moueix, owner of Château Petrus, was quoted in Decanter, as saying: “The grapes are impeccable. I have seen nothing like this in many years.” We have been in Bordeaux over the last week and visited some of the Châteaux, spoken to the producers and also the négociants. Whilst it is true that the Bordelais rarely talk down a vintage, there is a serious belief that 2005 could be exceptional. This is probably best highlighted by their indifference when talking about the 2005 prospects - a sure fire sign that something very special is in the making!
(more in the full report)

Final Thought
The arrival of Yquem 2001 has started something of a frenzy. The 2001 vintage is certainly the best from Sauternes in a generation and Yquem made one of the all time greats. There has already been huge interest in 2001 Sauternes. Other top rated 2001s like Climens (RP 100), Rieussec (RP 99) and Suduiraut (RP 98) have been amongst the biggest price risers (up by between 2-3x) over the past two years.

These wines are all already more expensive than any stock available in the last 25 vintages. For this reason, Yquem 2001 is likely to open at a stratospheric level and then get more expensive.


(extensive tables and analysis of Yquem continues in full report)

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