Market Trends - Feb.15, 2016.

2016-02-15

As expected, Bordeaux continues to dominate trading on the exchange both by value and volume. Reported figures much the same as the previous quarter, with Bordeaux accounting for 75% of trades, and 75% of trading value. The latter is a 5% fall from the previous quarter, which reflects an increased number of trades overall, and in increase in bulk trades of slightly lower value wines in the runup to Chinese New Year.

Burgundy has increased market share on last quarter, now accounting for 15.75% of trade by value, and 11.55% by volume. Both figures are big steps up from the previous quarter, and serve to demonstrate that the marketplace is still small enough to be affected by parcels from individual collectors providing a sudden elevation in liquidity, especially outside Bordeaux.

The First Growths accounted for the largest shares of the market in terms of value trades, and within that number Mouton Rothschild had the best of it, with a 31.8% share of the First growth market by value. Lafite trailed slightly at 26.1%. Haut Brion showed higher than expected at 16.67% and Margaux held its ground at 11.9%.

The surprise in this quarter has been Latour, which has trailed at 7.14%. Hard to determine whether that’s just slightly lower availability of Latour in the market over that period, but either way it seems like the two Rothschild properties are on top at the moment.

The increased focus on Burgundy came at the expense of Italy, which seems to be slightly off the boil compared to the previous quarter’s promising outlook. In fact, Italy was clearly overtaken on volume by the Rhone, which ran at 5.89% of volume traded v Italy’s 1.54, although on value traded the figures are rather closer.

Access the Trading Desk to view recent trades, bids & offers.