Wine Talk

Snooth User: ChipDWood

The market, & wine.

Posted by ChipDWood, May 6, 2010.

Morrell got in just under the wire, with some sound results.

HDH, who has a sale coming up (on the 8th), will be following today's market shake-up.

Should be interesting to see what happens in our own little corner of the pond concerning vino, and the veritas of its value.

Replies

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Reply by Gregory Dal Piaz, May 7, 2010.

It will be interesting to see. There has been remarkable strength in the auction market of late and I expect that to continue. Some attractive lots in the HDH auction. I expect most of what I looked at to come in just around high estimates.

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Reply by ChipDWood, May 8, 2010.

It could go either way, especially after the NYSE dropped again on Friday (- 139.89)- setting up what could be either a buyer frenzy on Monday or a massive sell-off.

Wine, as a commodity, may only be what, maybe 10% of the overall wine market in dollars- but the Asian market has been the major thrust behind those strong numbers you site concerning the auction market.  They've been buying up all the premium stuff, and created the "rising tide" almost by themselves.  If they should tighten up their wallets in light of the fundamental problems regarding the European market - and the international influence it will have- it could swing us back into one of those little "great time to buy at auction" pockets, similar to a year or so ago.

Unfortunately, it's summer, and the end of auction season for the first half.

Morrell Wine Auctions just had a sale, and though a (much) smaller house (that I used to work for, disclaimer complete) their timing was perfect with some strong items, having their auction last weekend.  They still came in below their low estimate for the sale, just ahead of the wave that caused the DOW to drop like it did this past week.

Mine eyes be peeled ;).

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Reply by ChipDWood, May 10, 2010.

HDH (Hart-Davis-Hart) Results are in from their auction this past Saturday. (More at this link)

"HDH Index at Highest Level Since September 2008 Fox Cellar Auction

Hart Davis Hart held a highly successful wine auction this weekend in Chicago, realizing $3,777,503 (ed. which includes premium) in total sales against a pre-sale auction estimate of $2,380,780 - $3,557,000. Wines from Château Lafite Rothschild, Château Pétrus, Domaine de la Romanée-Conti, and Harlan Estate generated spirited bidding from US, international, private and trade buyers. An exciting selection of rare Burgundy from Armand Rousseau brought prices that soared over the high estimate ranges.

The HDH Index, which tracks the performace of fifteen key wines sold at auction, finished up 2.84% and is now up 19.42% on the year. Chateau Mouton-Rothschild continues to appreciate in value at a rapid pace. Hammer prices for the 1986 vintage rose 34% from the previous auction and have increased by a remarkable 80% this year. Château Lafite-Rothschild continues its torrid pace. The 1982 vintage brought prices as high as $45,410 per case, while the 2000 vintage brought $26,290 per case.

“The room had great energy,” said CEO Paul Hart. “Our Asian, South American, and European clients are seeing increasing competition from decidedly upbeat US buyers.”

Bidders participated from 42 states and the District of Columbia, as well as Australia, Brazil, British Virgin Islands, Canada, China, Germany, France, Japan, Mexico, Puerto Rico, the Philippines, Singapore, South Korea, Spain, Switzerland, Taiwan, and the United Kingdom. The auction room in Chicago was packed with enthusiastic buyers who enjoyed incredible wines and great food throughout the day.

“Auction prices are again near all-time highs as the top wines in the world now have a truly global following,“ commented Chairman John Hart. “But, the story that is being largely ignored is perhaps the most important of the year… the resurgence of the US buyer.”

 (ED... and now, that's not even to mention the renewed strength of the US dollar.)
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Reply by Gregory Dal Piaz, May 11, 2010.

It's still a good time to be selling wine.


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