Economic pressures felt at the lower-end of the Adelaide Yearling Sale market
The challenging times at the lower end of the yearling market came to fore at the Magic Millions Adelaide Yearling Sale, with all the key metrics from the two-day sale down on last year’s corresponding edition.
At the close of trade, figures told the tale of a challenging few days for vendors. All told, 269 horses sold at a clearance of 76 per cent, while the aggregate dropped 26 per cent year-on-year to $10,578,500. The average also struggled, falling 20 per cent to $39,325, while the median closed at $30,000, a 7.5 per cent dip on last year’s figure.
The company’s managing director Barry Bowditch said economic factors both inside and outside the industry meant that yearlings, particularly at the lower-end, struggled to measure up in the sales ring.
“This is where it starts and it’s an important part of the ecosystem and it’s getting tougher at that end,” he told ANZ News. “If you’ve got a quality horse, it doesn’t matter where you offer it, you’ll get paid well, and that was evident over the last two days. But if you’ve got a horse that’s off the pace or it’s not what the market’s looking for, it’s tough out there.
“When you look at the climate, whether it be interest rates or fuel prices or everything in between, at the bottom end, it’s affecting people, and that’s evident at that lower end more than anywhere.
“I think from a clearance rate perspective picked up today. I think the better horses on the whole landed yesterday, so obviously the average was always going to come back to a clog. It’s disappointing it’s come back a good amount off last year, but effectively this is the grassroots of the industry.
“A sale like this or like we had last week, you’ve got more of those horses in the catalogue – they need to be sold or need to be offered somewhere and it’s tough for those horses. But, I thought when a good colt or filly, in particular a good colt, walked in the ring, if it vetted out well, there was a fantastic thirst for those horses and they sold very well.
“There’s a craving for quality and some accountability has to be made on the leading breeders in the state to support the sale and give it real impetus that the market has to come to Adelaide – to support the local sale with quality horses.
“This is the coal face of our industry. There’s a lack of confidence at the lower end and the reality is, it’s tough out there – whether it’s fuel prices, interest rates.
“We will continue to work with our vendors to get a good quality of horse here. When you look through the results and speak to a number of the vendors, who I have spoken to over the last two days, many are delighted with the results and pleasantly surprised with the depth and support on many horses,” Bowditch added.
“We are in Adelaide for the long haul. We are not going anywhere and we are looking forward to next year’s sales and many years into the future.”
Bowditch also pointed to the compressed sales calendar as a contributing factor.
“I think buyers or trainers or agents, they’ve all got their own businesses to run, which obviously sales are an important part of that. But the wall-to-wall sales, basically each week since January, there’s been an auction or an inspection day or something going on,” he said.
“Since the 8th or 10th of January until now, It’s been a really busy time. Buyers are out there being sensible about things and they’re still selling down the stock that they’ve bought at all the sales this year. That’s an important part of what they do and they need time to do so.
“I think next year, there will be a little bit more space there, a week or two. We’ll look at what fits the calendar best for a sale like this and a sale like March, and see if we can give the market a little bit more room if it’s possible. And we’ll obviously talk to our sellers and see what they think is the best way to go with that.
“From our perspective, I’d like to think the local breeders here should have confidence that if they leave premium horses here in the state, they’ll get paid just as well as what they would anywhere else.
“I think there’s plenty of horses here that came from interstate breeders as well that actually sold better here than what they would have at any other sale so we’ve got to do our best to give the South Australian breeders confidence that if they’ve got good, solid middle market product, this is the place to keep it.”
The sale concluded with six yearlings selling for $100,000 or more, and trade was spearheaded by a Tassort (Brazen Beau) colt from Sullivan Bloodstock who was snapped up by Trilogy Racing and agent Suman Hedge for $120,000.
Bred by David Brideoake, the youngster is the sixth foal from four-time winner Ominous Quality (Elusive Quality), who finished fourth at Listed level. She is the dam of four to race for two winners, while the colt’s granddam is Group 2 winner and Group 1 placegetter Noircir (Bureaucracy).
Sullivan Bloodstock’s Sherah Sullivan was pleased with the result.
“He is a lovely colt,” she told ANZ News. “We had actually handpicked him to come here, just because there were a few Tassorts in other sales, and we just thought he’d stand out really well here, which he has. He has gone to a great judge and we’re delighted with the price, he was a beautiful horse.”
Despite the challenging conditions, Sullivan enjoyed a strong clearance rate across her draft.
“It has been sticky, everyone is aware of that, but we have sold 100 per cent today,” she added. “I guess we’ve just got them on the market and we are sellers and people know that. So it’s helped and we’re happy with today. We’re wrapped with that result, it is excellent.”
Hedge was similarly taken by the colt’s physical attributes.
“He’s just a gorgeous horse,” Hedge told ANZ News. “Quite a striking type and he was very hard to miss. He is a terrific mover, has great balance, athleticism and a great temperament. We had him out multiple times and he never turned a hair – so a lot of the key characteristics that we look for from an athletic requirement. He also had a very good cardio and we place a bit of importance and things like that. So I’m happy to purchase it for Trilogy Racing.”
Hedge said a trainer for the colt would be decided in due course.
“I think the stable will be determined a little bit later. We’ll just let the dust settle, get him broken in, and Jason and the team will come together and make a decision as to where he heads,” he added.
Active throughout the sale, Hedge, alongside his various clients, signed for ten lots for a combined spend of $617,000 and acknowledged the difficulties faced by vendors.
“I feel a little bit for the vendors here – Magic Millions have done a great job, they’ve assembled a good catalogue,” he said. “There was enough to buy, but a lot of people weren’t here for varying reasons.
“I think there’s probably the timing of it with what’s happening in the world at the moment, fuel and inflation and stuff like that, and a little bit of sales fatigue as well. There’s probably all been a bit of a perfect storm and that’s what we’ve seen here.
“But I absolutely love this sale, so I just think it’s a bit of a blip on the map and it’ll bounce back again next year. We love coming here.”
Magic Millions will now turn its attention to the National Yearling, Weanling and Broodmare Sale on the Gold Coast from May 24 to June 2.
“Obviously it’s a busy time taking entries,” Bowditch said. “We are really excited by some of the outstanding race fillies and broodmares that we’ve got to offer. There’s some real highlights which we’re excited about and our weanling sale is coming together. We’ve got some big drafts from particular vendors and obviously entries are still open and we look forward to marketing that catalogue from late April.”