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market report
Liv-ex is an electronic exchange for fine wine used by professional merchants and collectors. Market Report is part of a package of services offered to subscribers of Liv-ex, with subscriptions starting at £49.95 per year. Below is just a brief extract from the latest Market Report. For the full report and to access Liv-Ex's services, sign-up with them at www.liv-ex.com
Liv-Ex Market Report
by Liv-ex.com, September 2009
Trading
September was a month when all signs pointed north. The FTSE finished
the month showing its largest ever quarterly gain (21%), while the US
economy started to follow France and Germany out of recession. The fine
wine market saw fit to join in. Trading was extremely heavy, up more than
35% month on month and set a new high for the year. Meanwhile, the
Liv-ex 100 Fine Wine Index continued to claw back last autumn’s losses,
finishing up 2.0% to 229.9. The index is now up 12.2% year to date, and
down 9.1% year on year.
(more analysis in the full report)
Major Movers
September saw an eclectic group of wines rise to the top of the major
movers board. Lafite heads the table once again (the 1998 Lafite is
perhaps the only great vintage still available at under £5,000 per case) but
we also have welcome appearances from Champagne and the New World.
Grange 1998 appears spurred on by the success of the 2004, while the
appearance of Dom Perignon 1996 is perhaps the first sign of a
Champagne revival ahead of this winter’s festivities. In contrast, the top
Right Banks are showing some softness.
Critical Corner
Final Thought
(analysed in detail in full report)
The latest edition (Sept/October) of the International Wine Cellar saw
Stephen Tanzer tackle the 2007 white Burgundy vintage. Allen Meadows,
the ‘Burghound’, also used his most recent edition (#35) to take a look at
the best whites from the Cote d’Or in 2007. The vintage was characterised
by a very hot April, which kicked off the growing season early. This proved
crucial, as the grapes were able to achieve full ripeness despite a wet and
miserable July and August. A warm and sunny September provided good
conditions for the harvest.
Both critics describe the 2007 vintage as being generally good with a
number of excellent wines. Tanzer writes that it is a “classic” vintage,
producing wines that are “focused, minerally and racy”, with “creaminess
without heaviness” and “great early appeal”. Meadows describes it as
“classically styled… pure, transparent and ripe… it’s also relatively
forward and accessible.”
(more analysis in full report)
Hong Kong rising.
It no longer seems outlandish to state that Hong Kong has become the
third major trading hub for fine wine, joining London and New York. At
the risk of hyperbole, the boom in demand for fine wine from Asia – in
which Hong Kong is the main protagonist, with Singapore, Macau, Japan
and mainland China the supporting acts – has transformed the global fine
wine market. Few would have predicted last September that we would
see wines, most notably Lafite, hitting all time highs less than a year
later.
Auction results have been the most visible signposts to Hong Kong’s
rapid emergence as a trading hub. In April 2008 Bonham’s held the first
fine wine auction since wine import duties were scrapped. Fast forward
to 2009 and Hong Kong’s total auction sales are likely to hit US$65
million, putting it second behind the US in the global auction rankings.
For Sotheby’s, Hong Kong is now its most important centre, with sales
in 2009 realising US$14.3 million. Ahead of both New York (US$10.5
million) and London (US$ 8 million).
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