Softening prices shore up fine wine trading

Trading during July for Mouton and Latour 2010 was “muted”, while Lafite dominated turnover, according to Bordeaux Index.

Speaking of sales over the course of last month, the merchant recorded a strong performance from Lafite 2010 and “good numbers” for Margaux and Haut-Brion, but a subdued demand for Mouton and Latour.

Commenting on this latter trend, it noted: “Latour continued with an already well established protocol of keeping back a large portion of the new harvest and this year Mouton decided to do the same.

“Although this might have the effect of supporting prices in the short run, with a near record number of top vintages produced in the last decade, it remains to be seen how this strategy will work out going forward.”

Considering the fine wine market more generally, Bordeaux Index MD Gary Boom predicted a “softening” of prices during August due to the “turbulent” financial situation last week, and said, “canny investors may even be able to pick up a bargain or two.”

However, Boom also forecast a price recovery for Bordeaux’s top châteaux in early September as the Chinese buyers stock up in time for the Asian mid-autumn festival, which takes place on 12 September.

The merchant’s fine wine and economic analysis showed that the price of gold climbed the most in July, up almost 8%, while “The Bordeaux Index” remained static.

In contrast, the FTSE 100 and Dow Jones were both down 2.2%.

Meanwhile, Liv-ex recorded a 2% drop in turnover during July, with, like Bordeaux Index, trade in Lafite and Carruades 2010 dominating, although it pointed out that this was “at somewhat reduced prices”.

Beyond Bordeaux, the fine wine exchange registered a rise in turnover for Champagne, “buoyed by demand for Dom Pérignon 1999 and Cristal 2004 (which was recently promoted by the Wine Advocate).”