Market Correction Evident as Inglis Premier Closes

Progeny of versatile stallions Pierro  and Toronado  rounded out the final session of the 2023 Inglis Melbourne Premier Yearling Sale, jointly topping day three at AU$400,000 (US$269,562, AU$1.00=US$0.6739), but it was the overall correction to the market that had industry figures talking.

The main 615-Lot Premier Session generated more than AU$58 million ($39,086,432) in turnover across 2 1/2 days, with another AU$5.5 million ($3,706,472) spent in Inglis' Showcase Session Monday, leading to the auction breaking the AU$60 million ($40,434,240) barrier for the third time in the Victorian sale's history.

That said, vendors found the market particularly difficult in comparison to the unprecedented demand of the previous two years, with the aggregate down AU$20 million year-on-year across the two books and a more cautious approach from buyers having an effect on the average, median, and clearance rate. 

The Premier Session averaged AU$135,671 ($91,429), the median was AU$100,000 ($67,390), and the clearance rate was 79%, compared to last year's AU$158,094, AU$140,000, and 90%.

Tuesday's Showcase Session, topped by an AU$160,000 Lonhro  colt (Lot 663) from the Supreme Thoroughbreds draft, averaged AU$40,500 ($27,293) at a median of AU$36,000 ($24,260) with a clearance rate of 73% as the final lot passed through the ring.

In closing out the main session Tuesday, agent Olly Koolman bought an AU$400,000 son of Toronado, the equal highest-priced lot on the third and final day. Koolman waited until day three to sign for the sire's most expensive yearling sold at the 2023 Premier Sale, on behalf of a Hong Kong client. The Toronado colt (Lot 589) is the second foal out of Mojo Moon, who won over 1,850 and 2,000 meters.

"I bought Senor Toba here at this sale four years ago, so he means a fair bit to me, the horse. I think (Toronado's) a great stallion, he puts great bone and strength into horses," Koolman said. 

Senor Toba, a group 3 winner in Australia, also has won multiple group races in Hong Kong for trainer Caspar Fownes, who is campaigning the gelding in Dubai.

Koolman has been actively sourcing horses, including an AU$300,000 Justify   colt at last year's Inglis Ready2Race Sale, for a client with an owner permit in Hong Kong.  

The half brother (Lot 288) to Senor Toba by Harry Angel  is also destined for Hong Kong after he, too, brought AU$400,000 on Monday from the Mill Park Stud draft.

Asked about the overall market at the Premier sale, Koolman said: "I think the vendors are having to work a bit harder than they are used to, which doesn't worry me so much. I haven't found it too difficult to buy a nice horse and we're going home pretty satisfied."

Trilogy in Hickmott's Corner 

Melbourne Cup-winning trainer Robert Hickmott also welcomed a "staying filly" by Pierro into his yard, after going to AU$400,000 for the last Premier Session yearling to go through the ring. Trilogy Racing's Jason and Mel Stenning and Sean and Cathy Dingwall, in their first Premier sale at the helm of Blue Gum Farm, will remain in the well-bred filly (Lot 615) after they purchased her last year as a foal. The ninth foal out of Now Now, she is a half sister to four winners.

Blue Gum Farm was crowned the leading Book 1 vendor at Premier for the fourth time in five years, selling 28 yearlings for AU$4.62 million at an average of AU$165,000, led by an AU$500,000 Zoustar  colt (Lot 499).

Sean Dingwall said it was clear that the market "correction has now taken place. You can see that in the sale's median compared to the past two or three years. There's been a significant correction. We all have to be realistic about where the economy is, and if you're getting horses sold at the moment, you're doing very well.

"We've seen all the ups and downs, so at the end of the day, you've got to ride with it, and when we go down, we've got to come up."

Yulong Prominent Buying and Selling

Yulong was the second-leading vendor by aggregate, but stud principal Yuesheng Zhang also added a filly by resident sire Written Tycoon  on day three. He paid AU$370,000 for the filly (Lot 560).

Yulong sold 21 yearlings in the Premier Session for AU$4.15 million at an average of AU$197,619. Tasmania's Grenville Stud was the leading vendor by average (three or more lots sold), selling three yearlings at a mean average of AU$233,333.

The top end of the market remained strong at Premier, but like the other sales this year, vendors found it harder to sell horses in other segments of the market compared to the past year or two.

Hong Kong's Upper Bloodstock of Ross Lao and Andy Lau bought 11 yearlings for AU$1.85 million to be the leading buyer.

It was the absence or decline in spending by some leading syndicators and trainers that was noticeable at the 2023 sale compared to the record 2022 auction.

"Our expectation was the sale would be down and we based that on the knowledge we have of the market and the feedback that we get from the market," Inglis Bloodstock chief executive Sebastian Hutch said. "I think it's been well publicized that the sale of shares from people looking to on-sell shares in horses has been slower than what it was 12 months ago and that's prompted people to be more conservative. That's the easiest explanation.

"Generally speaking, there's plenty of money in the market still. Ultimately, time will demonstrate that the market for 2023 is probably going to be one of the most lucrative markets in the history of Australian bloodstock, it's just not the same as it was in 2022."

The Magic Millions Adelaide Yearling Sale will be held next Tuesday and Wednesday.