The total value of wine traded on the Exchange remained consistent from last week, although fewer trades pushed the average transaction price up by 26%. The primary cause of the falling number of transactions was that First Growth trading was thinner than usual, and as a consequence of both this and currency movement, the Liv-ex Fine Wine 50 fell slightly for four days in a row. Thursday’s closing level of 350.2 is 0.1% lower than the previous week.
Instead the majority of Bordeaux’s trade came from the lower echelons of the classified growths and the Right Bank. Le Pin 2016, traded under an SEP* contract, was the most traded wine by value.
The interest in trading Australian wines on Liv-ex continues to build. Two weeks ago Torbreck, Laird 2012 found the bid in volume. In the past seven days Australia’s market share has surpassed that of red Burgundy aided by Clarendon Hills, Astralis Shiraz 2010 being the second most traded wine by value this week.
Mouton Rothschild 2000’s last trade price of £15,850 is an all-time-high for a case of 12×75. This high price has been linked to the special gold label on each bottle, made to commemorate the millennium. Nonetheless, this is a remarkable premium of 47.6% to the Market Price of Mouton Rothschild 1982.
On Monday Yquem 2015 opened on the market for around £3,000 per 12×75. As the graph below shows, LVMH, the owner of Yquem has made a strategic decision to keep release prices lower after years of overly ambitious pricing left stock sitting in the market and eventually sent prices tumbling. Since 2011 each vintage has opened ex-negociant at €250, with currency swings being the reason for the difference in the ex-London price.
Two ex-chateau releases finalised September’s offerings from La Place de Bordeaux – both at a premium to stock available on the secondary market. On Tuesday Forts Latour 2010 was offered with a 6.2% premium to Market Price yet was still received well. Finally on Thursday Palmer 2006 opened in London at £2,600 per 12×75, a 40.5% premium to the market which made it a hard sell for many merchants.
*An SEP contract is a Special: En Primeur contract