Market Trends - March 24, 2016.

2016-03-24

Sales of Bordeaux through the exchange saw a significant increase on the preceding month, rising from a 75% share of the market to 88%, the highest market share since the launch of the exchange in 2013. Bids overall in Bordeaux have increased in value by 2 percentage points, perhaps reflecting a slight upturn in confidence in the market.

The steep rise in Bordeaux’s market share overshadows other regions, pushing Burgundy right back to 5%, though the figure reflects less a decline for Burgundy than the strengthening of the market in Bordeaux. Volume and value traded were in fact similar to the preceding period. Rhone had a poor showing overall, dropping market share to 1.3%. Again, the figure is skewed by Bordeaux, but in any case volumes were down, mitigated only by a flurry of interest in Henri Bonneau triggered by the announcement of his death on Wednesday. The remainder of the market was shared almost equally between Champagne and Italy, where trading in top level Barolo oustripped Supertuscans two to one.

As usual, the First Growths accounted for the lion’s share of the Bordeaux market, 72% of the value of Bordeaux trades were made up of 1ers crus and their right bank equivalents. Several large trades in Haut Brion saw that wine take 61% of the value of 1st growth trades, though Mouton continued to hold its own at 11.7%, down by percentage on the preceding period, but up in overall value and volume. Lafite remained strong at 5.8%, with Latour and Margaux lagging behind. Petrus showed strongly too, picking up a share of 11% among the 1st growths, though the high value of these wines always has a tendency to distort market share by value.

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