Fine wine market stagnates?

With Bordeaux 2013 drawing to a close and rapidly becoming a vintage that most collectors and merchants have let sail by without much activity, the Fine Wine market appears to have entered into a dormant phase.  Could it be a time to pause for reflection on where opportunities have been lost? Alternatively, is it a time where strong direction is needed to breathe life back into a very tough market?

Discussions in the press indicate that the Bordelais are damaging their brands by pricing high rather than attempting to protect them. Releasing at sensible prices would have encouraged buyers to return to the En Primeur market, instead they have clearly kept their money in their wallets. Asian markets are citing that the strong Sterling rate is hampering purchasing, whilst overstocking in Hong Kong is leading to a period of contraction. It all makes for a rather gloomy global picture leading to a much less active period over the coming weeks.

This has been clearly reflected on Cavex over the past week with a small amount of growth and total positions climbing a mere 0.5% overall to £4.2 million. Most notably as the offers grew by 1.2%, there was a clear correction in bidding prices as new stocks were loaded and offer positions reduced.

The bid to offer ratio has dropped slightly to 1.25:1 showing there are still willing buyers out there, but at a price. Asian buyers are reducing their prices to offset the higher FX rates they are currently encountering, which will not be helping sellers who have already been reducing prices over the past few months.

Bordeaux is still representing the majority of trades, but Burgundy has been making a more prominent stance over the past week. Highlights were a small parcel of Henri Gouges 2009 and 2010 trading early in the week with a great parcel of Taupenot Merme 2010 currently up for offer at significantly reduced prices. Hudelot Noellat also continues with strong activity with new offers placed.

Italian wines have also seen greater emergence this week with some very interesting offers for Sassicaia 2007 at £650 per 6 and Guiseppe Mascarello’s Barolo Monprivato 2007 at £485 per 6.

With prices softening further, there are still some great bids to be matched on the platform. Sellers looking to move wines can continue to find buyers. They will just be required to revise that price a fraction further this week.

Hot Offers
Wine Vintage Format Qty Price Last Traded Date
Alain Hudelot Noellat Richebourg 2007 6 x 75 5 £1,550
Bollinger Grand Annee 2002 6 x 75 1 £345
Brovia Barolo Ca Mia 2008 6 x 75 5 £220
Chateauneuf Du Pape Deus Ex Machina 2010 3 x 75 1 £1,200
Cos d’Estournel 2002 6 x 75 1 £425
D’Arenberg Coppermine Road Cabernet Sauvignon 2001 6 x 75 11 £85
Du Tertre 2004 12 x 75 2 £225
Giuseppe Mascarello, Barolo Monprivato 2007 6 x 75 1 £485
Grand Veneur Chateauneuf de Pape 2010 6 x 75 16 £95
Haut Brion 2008 12 x 75 1 £2,600 £2,600 18/12/13
La Chapelle de la Mission Haut Brion 2007 12 x 75 3 £425
La Chapelle de la Mission Haut Brion 2009 12 x 75 3 £390 £390 11/04/14
La Fleur Petrus 2009 6 x 75 1 £825 £825 01/04/14
La Mission Haut Brion 2004 12 x 75 15 £1,050
Lafite Rothschild 1996 12 x 75 1 £7,400 £7,750 03/03/14
Leoville Barton 2003 12 x 75 1 £690 £690 10/03/14
Leoville Poyferre 2003 12 x 75 3 £1,040 £1,040 18/03/14
Mouton Rothschild 2008 12 x 75 1 £1,500 £1,500 16/04/14
Penfolds St Henri Shiraz 2008 6 x 75 8 £225 £230 18/09/14
Phelan Segur 2009 12 x 75 1 £260 £265 31/03/14
Rene Rostaing Cote Rotie Classique Ampodium 2011 6 x 75 5 £140
Rene Rostaing Cote Rotie Landonne 2011 6 x 75 5 £295
Romanee-Conti Romanee St Vivant 2004 3 x 75 1 £1,700
Screaming Eagle, Cabernet Sauvignon 2009 3 x 75 1 £3,800 £3,600 11/04/14

Hot Bids
Wine Vintage Format Qty Price Last Traded Date
Angelus 2006 12 x 75 1 £1,600 £1,600 29/04/14
Batailley 2009 12 x 75 1 £285 £290 16/09/13
Beychevelle 2008 12 x 75 20 £535 £520 30/01/14
Cheval Blanc 1998 12 x 75 1 £3,500 £3,150 22/10/13
Cheval Blanc 2000 12 x 75 2 £5,250 £5,250 08/04/14
Clerc Milon 2009 12 x 75 5 £405
Clinet 2009 12 x 75 2 £2,100 £2,100 10/03/14
Cos d’Estournel 2007 12 x 75 20 £630
Grand Puy Lacoste 2006 12 x 75 20 £320 £300 02/01/14
Guigal Cote Rotie Landonne 2009 3 x 75 1 £900 £850 19/12/13
Guigal Cote Rotie Mouline 2009 3 x 75 1 £900 £900 12/12/13
Guigal Cote Rotie Turque 2009 3 x 75 1 £900
La Fleur Petrus 2006 6 x 75 1 £600 £545 06/03/14
Lafite Rothschild 2004 12 x 75 1 £5,035 £5,030 28/03/14
Lafite Rothschild 2006 12 x 75 1 £5,040 £5,025 28/03/14
Latour 2003 6 x 75 1 £3,200 £3,200 20/03/14
Leoville Las Cases 2000 12 x 75 2 £1,900 £1,900 16/04/14
Leoville Las Cases 2007 6 x 75 10 £450 £450 07/04/14
Lynch Bages 2007 12 x 75 1 £680 £680 05/09/13
Lynch Bages 2010 6 x 75 1 £450 £425 18/04/14
Malescot St Exupery 2004 12 x 75 1 £325 £325 13/06/14
Mouton Rothschild 2001 12 x 75 1 £2,780 £2,760 28/03/14
Mouton Rothschild 2009 12 x 75 1 £4,700 £4,675 14/02/14
Ornellaia 2004 6 x 75 1 £750 £750 10/12/13
Palmer 1999 12 x 75 1 £1,750 £1,705 27/04/14
Palmer 2005 12 x 75 4 £1,680 £1,680 13/03/14
Pavie 2008 12 x 75 5 £1,525 £1,525 04/03/14
Pavillon Rouge 2000 12 x 75 4 £1,370 £1,340 14/08/13
Pavillon Rouge 2001 12 x 75 4 £920 £920 07/04/14
Pavillon Rouge 2003 12 x 75 4 £970 £960 29/11/13
Pavillon Rouge 2008 12 x 75 10 £900 £890 21/03/14
Pavillon Rouge 2009 12 x 75 3 £900 £900 31/03/14
Petit Mouton 2006 6 x 75 30 £525 £520 10/02/14
Petit Mouton 2009 6 x 75 17 £535 £535 27/03/14
Pichon Baron 2003 12 x 75 1 £840 £835 09/04/14
Pontet Canet 2008 12 x 75 2 £560 £560 25/04/14
Pontet Canet 2008 6 x 75 1 £280 £280 25/04/14
Sassicaia 2007 12 x 75 5 £1,240 £1,240 18/03/14
Smith Haut Lafitte Rouge 2010 6 x 75 1 £400 £385 24/09/13
Trotanoy 2009 6 x 75 1 £1,080 £1,080 06/03/14

Enjoy your weekend.

Steve, Daniel, Simon & Jean

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