October 2024 brought a small but notable shift in the fine wine market as the Liv-ex Fine Wine 100, the industry’s benchmark index, recorded a 0.1% increase, the first positive movement since March.
This modest rise was largely driven by standout performances from Joseph Drouhin’s Marquie de Laguiche 2020, Louis Roederer’s Cristal Rosé 2014, and Biondi-Santi’s Brunello di Montalcino Riserva 2016, each seeing price hikes of over 10%.
However, the broader market, represented by the Liv-ex Fine Wine 1000 Index, which tracks 1,000 wines globally, showed a more subdued performance with a 0.8% decline, closing at 374.57. Among the seven sub-indices that comprise the Liv-ex 1000, Italy 100 was the only one to see growth, with notable increases from Fontodi Flaccianello delle Pieve and Giacomo Conterno Barolo Monfortino Riserva. Conversely, Masseto experienced the largest declines in the Italy 100, driven mainly by its 2015 and 2016 vintages.
Sub-Index Performance: Highlights and Lows
The Italy 100 index rose by an average of 3.2% and 2.0% respectively for Fontodi and Giacomo Conterno, with Masseto posting a 1.1% average drop. Outside of Italy, California 50 and Rest of the World 60 emerged as October’s weakest performers, declining 2.5% and 2.8% respectively. California’s 2013 and 2015 vintages saw the largest price decreases, averaging a 5.3% and 5.1% drop, while wines from 2010, 2018, and 2019 remained stable.
The Rest of the World 60 Index experienced technical challenges as it fell further into "oversold" territory, based on its Relative Strength Index (RSI), which dipped below the critical 30-point mark in September. Additionally, its 20-month Simple Moving Average (SMA20) recently crossed the 50-month SMA, suggesting continued weakness ahead.
Trade and Volume Increase in October
Despite the varied performance across indices, the Liv-ex platform witnessed a significant uptick in activity. October set a new record for unique wines (LWIN11s) traded since January 2022, showing a 20.5% rise over September. Additionally, October recorded a 31% increase in traded liter volume and a 24.4% jump in traded value, indicating heightened buyer interest and a broader range of wines entering the market.
Noteworthy Movements in California and Second Wine Markets
Within the California 50, the 2018 vintage of Opus One led month-on-month gains, with a 7.1% price increase, trading at GBP 2,664 per case of 12x75cl. Other wines in the index, like Ridge Monte Bello Cabernet Sauvignon, saw price dips, with Ridge Monte Bello falling 4.4%, marking it the month’s weakest performer.
The Second Wine 50 Index recorded a 1.5% decline in October, outpacing the 0.7% drop seen in the Liv-ex Fine Wine 50. This movement reflects an ongoing correction in prices for second wines, which previously saw faster inflation than their first-growth counterparts.
Understanding Liv-ex Indices: Insights into the Fine Wine Market
The Liv-ex Fine Wine 100 and Liv-ex Fine Wine 1000 serve as crucial market benchmarks. The Liv-ex 100 tracks price movements of 100 highly sought-after wines across France, Italy, the USA, Australia, and Spain. Meanwhile, the Liv-ex 1000 represents a broader market scope with wines from seven sub-regions, including Bordeaux 500, Burgundy 150, and Champagne 50.
Both indices reflect active trade prices through the Liv-ex Mid Price, which takes the midpoint between the highest bid and lowest offer on the platform, capturing real trade data from over 620 global merchants. These indices provide the fine wine industry with an independent, accurate reflection of market trends, as Liv-ex itself does not engage in trading, ensuring the reliability of this market data.
Source: Liv-ex