NEWS
Tempered expectations at OBS mixed sale
Posted: Sunday, October 11, 2009 1:45 PM
by Cynthia McFarland
Approaching the Ocala Breeders’ Sales Co. fall mixed sale, many consignors took a cautious approach when it came to expectations.
Last fall’s sale topper was a weanling filly by Exchange Rate, consigned by Horses of Course, agent, who sold for $105,000 to Twin Peeks Racing. The 2008 sale came just after the September stock market crash and the sale’s final numbers reflected the struggling economy.
Average price of $8,973 was down 39% compared with 2007, and the median of $4,500 was down 40%. Gross receipts were down 65.4%, but the 2008 sale was shortened to three days, while the ‘07 sale covered five days and offered far more horses.
“I would hope that we could be close to last year’s numbers, but I really wouldn’t be surprised if we even see a slight decline from that. I don’t think anyone who’s following the industry and is realistic would be unhappy if we can get numbers that resemble last year,” said Justin Casse of Casse Sales.
“I’m really happy with the quality of the horses I have in the sale, both babies and mares,” Casse said. “I have a nice D’wildcat and he’s probably got the best two-year-old in the country right now [multiple graded stakes winner D’ Funnybone]. I also have a beautiful Wildcat Heir and with all the runners [that sire] has, I’m sure he’ll be popular. It’s really just a question of who’s going to be here and be active. I’m sure there will be a couple yearling pinhookers in town from Kentucky, because they come in every year and seem to do well. They don’t seem to miss this sale. I’d be more concerned how much local money will be here and active.”
Casse said he has 39 mares who are on the New York-bred program, most of whom are in foal to Kentucky sires.
“It’s an excellent buying opportunity for restocking your broodmare band,” he said. “I have clients that are asking for direction on which way they should go with certain mares, and I’m telling them now’s the time to get rid of what’s not producing and you can renew your broodmare band and upgrade.”
Some consignors believe shortening this year’s sale to two days is not necessarily a bad thing. There is hope that with less supply, there may be more demand.
“We’re trying to keep our broodmare band neat and tidy, and we’re trying to take our best guess at selling the right ones,” said Bruce Hill, farm manager of Live Oak Stud, which has a consignment of eight mares, all selling without reserves. “These are useful mares and we wish everyone luck with them. We’ll hold our breath and hope they sell and find good homes. It’s a buyer’s market if you’re fortunate enough to have some cash, but we anticipate it’s going to be rough from the seller’s side.”
Hill certainly won’t mind if this sale is a repeat of Live Oak’s success at last year’s OBS fall sale.
“We wound up selling mares extremely well and they sold for more than we anticipated just because of the dynamics of the sale,” Hill said. “There were a lot of scratches, but we left ours in. It was on the heels of September and just the beginning [of the recession].”
This fall, more than a few horse owners are uncertain about selling.
“A lot of clients are asking if they should wait and see if next year will be better or if they should roll the dice and take a chance now,” said Barbara Vanlangendonck of Summerfield Sales, which always has a large consignment at the OBS fall sale.
With 95 horses originally cataloged, Vanlangendonck had scratched 13 entries five days prior to the sale. She expects more clients will want to scratch horses as the sale approaches.
“I think this will be a very tough sale,” Vanlangendonck said. “The good individuals with a little bit of pedigree will probably bring what they’re worth; anything other than that will take a hit. Even when our economy corrects itself, it will take a couple years after that for the horse business to come around.”
Summerfield is coming off a personal best at the Keeneland September yearling sale. Their consignment included the sale’s second highest-priced horse, a $1.3-million Medaglia d’Oro filly purchased by Live Oak Plantation.
“We went in there with the stock and were realistic with our expectations, and they still brought two and three times what we expected. But we were very fortunate, very blessed, that this happened,” Vanlangendonck said. “It was a very tough sale for the vast majority of consignors and sellers. Even in a good economy we would have had a good sale. It just happened to work that way for us. Being aware of the fact that it’s not normal made us even more appreciative. It’s back to reality now. We just finished with Maryland and it was very, very tough.
“We’re gamblers, that’s why we’re in this business; whether at the [betting] window or on the hoof, it’s what we do,” she added. “Your expectations have to be reasonable if you want these horses to find new homes. We’ve been encouraging clients to be realistic about what their horses are worth. It’s hard to look at your own stock and admit you made a mistake buying or breeding them. We gave one mare away last year and two weeks later she gets a stakes horse that has now won over half a million dollars. She’s in a great place and good luck to the people that have her. There an old adage that says the best way to make a broodmare is to sell or give her away. It’s God’s way of keeping us all humble.”
Cynthia McFarland is a Florida-based Thoroughbred Times correspondent
