Talking Trade – Italy accounts for a quarter of trade

Talking Trade comes to you today as we break early and wish you a warm and safe Easter weekend.

Liv-ex saw two records broken this week as Italy (24.7%) reached almost a quarter of trade by value and Bordeaux (36.1%) fell to its lowest monthly share ever. USA (7.7%) and Others (7.5%) also saw substantial increases in trade as large parcels from Caymus 2017, Screaming Eagle 2007 and Keller 2017, changed hands.

Despite Sterling strength this week, the Fine Wine 50 rose, to close the shortened week up 0.36%.

The top traded wine by value this month was Giacomo Conterno, Barolo Monfortino 2013. Antonio Galloni recently awarded the wine 99 points, exclaiming “in the 2013, readers will find a biting, vibrant Monfortino built along super-classic lines that includes vintages like 1996 and 1999”. Although alike in taste and score, the 1996 and 1999 vintage are much different to the 2013 in price. The 2013 sits at a 35% discount to the 1996 (£12,108) and a 25% discount to the 1999 (£10,800).

The 2016 vintage made up over a quarter of Italy’s trade by value this week with wines from Piedmont in the ascendancy.

 

2020 has been a difficult year for the Liv-ex 1000 and its sub-indices, but the shining light has been Italy. The excitement around 2016 Barolo and 2015 Brunello and the omission from 25% US tariffs in October has elevated the region’s appeal. Having risen 0.03% over the past month and 3.9% over the past year it is the outright performer of Liv-ex indices.

Despite this, Italy still offers some of the best value for money. In our recent Italy report, we found that Tuscany offers one of the cheapest entry points into fine wine and even though Piedmont prices are higher – more than double that of Super Tuscans – top Barolo and Barbaresco are still less than half the price of Bordeaux and quarter the price of red Burgundy.

A dash to digital

Automated buying and selling accounted for over 28% of trade in March, a record high. A rise in client-driven online buying was the key driver. In the first week of April, the value of wine available on the market reached £50 million, providing buyers with plenty to choose from.