One swallow doesn’t make a summer but there are a few signs that Bordeaux prices might soon turn around:
- Two weeks ago, the Liv-ex 50 was up for first the time since late June (although last week saw a small drop again).
- Lafite 2008 and Mouton 2008 have been rising, as some traders seem to think prices have dropped too far.
- Well priced offers are still there, but drying up.
- More and more people think the bottom of the market is not far off, so demand is increasing – including 1st growths.
- Europe has taken what could be a decisive step.
- The majority of En Primeur payments will be done at the end of November, meaning that, for some traders, there will soon be less need to sell.
- Reportedly, there are at least 2 wine funds in China that will become operational at the end of the year.
- Chinese New Year is coming up, traditionally the single most important purchasing event of the year.
In the meantime, everybody’s off to Hong Kong this week for the HK International Wine & Spirits Fair, as well as Wine Future HK.
We will be there as well. It will be a good opportunity to assess first hand what the state of affairs is in HK and China. It's a fact that demand from China is a far cry from what it was last year, due to stockpiling by traders. Only when this stock is finding its way to the end-consumer, will Asian demand restore itself again. We'll try and find out and, as always, we'd be very happy to discuss our views.