The Liv-ex February Market Report has been published exclusively for members on our Silver tier package or higher. The following is an extract.
A positive outlook for fine wine
The fine wine market faced the challenges of the past month with robust determination – positive news for believers of the “January effect” (as goes January, so goes the year). The Liv-ex 100 index rose 0.6%, marking its highest point since September 2011. The broadest measure of the market, the Liv-ex 1000, increased 0.8%, helped by a strong start of the year for the Burgundy 150 (1.9%) – the biggest underperformer in 2020. The second best performing sub-index was the Rhone 100 which reached a historical milestone, surpassing 200 for the first time in the index’s 18-year history. Meanwhile, the star index of last year, the Italy 100, drifted 0.5%.
Despite the logistical challenges surrounding the UK’s exit from the Customs Union, the continued lockdown for much of Europe’s restaurant sector and the new US tariffs on EU wines, demand for fine wine held steady. The number of individual labels traded (LWIN7s) rose to 1,209, an increase of 78.8% year on year. (LWIN11s, which include vintage, climbed above 2,000 for the fourth time in the last five months).
January is always a Burgundy month as merchants (and their collectors) consider the latest release – this year, the much-admired 2019 vintage. The combination of high quality and low yields led to robust secondary market activity in physical vintages lifting the region’s share of trade by value to 23.3%. See page 4.
January proved to be a record-breaking month for trade in US wines – values and volumes traded as well as total exposure (the value of LIVE bids and offers on the market) all set new highs for the first month of the year. USA accounted for 10.7% of the total trade by value. As the highly regarded 2018 Napa vintage comes to the market over the weeks ahead, we can expect to see the US remain firmly in focus.
Bordeaux dipped to 31.7% (below its 2020 average of 42%), while Italy, Champagne and the Rhone all held steady.
The full report contains additional Liv-ex research and analysis:
- Major market movers: Burgundy in the spotlight
- Chart of the month: Burgundy bids 2019 vs 2020
- Critical corner: William Kelley on Burgundy 2019
- In the news: Fine wine acquisitions and UGCB confirms new tasting dates
- Final thought: Buying Burgundy in 2021
Liv-ex members on our Silver tier package or higher can download the full report here.
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