Will Middle Market Emerge at OBS March Sale?

As owners, agents, and trainers began their inspections in earnest for horses entered in the Ocala Breeders' Sales Co.'s 2-year-olds in training sale, there was a positive vibe on the sale grounds the morning of March 12.

With partly sunny skies and a temperate 80 degrees, there was a bevy of activity as the showing, scoping, and analysis began following three days of under tack show workouts for the March 14-15 sale in Ocala, Fla.

"There was plenty of money in Miami (at the Fasig-Tipton sale) and many buyers left with money to spend," said Ciaran Dunne of Wavertree Stables. "So if you add a few more buyers to that, this sale should be OK."

"As I say before every sale, we are cautiously optimistic," said OBS sales director Tod Wojciechowski. "We don't want to seem overconfident, but we've been happy with the pre-sale interest we have seen."

The optimistic view of sales company officials and consignors stem from a combination of factors, including the thriving U.S. economy, positive results of the recent Fasig-Tipton Gulfstream sale where 74 horses grossed $25.1 million and the average rose 3.8% to $339,392, and the on-track results of auction graduates.

The March sale, previously a select venue before being expanded three years ago into an open and larger catalog, provides a broader picture of the depth of the bloodstock market than that offered by the Gulfstream sale, which got the juvenile sales season off to a great start.

The March sale has produced six champions, 24 millionaires, and six winners of seven Breeders' Cup races. Since the beginning of 2016, OBS March graduates have won or placed in 231 stakes races, including 81 graded events.

Included in those successes are seven grade 1 winners in 2016, all of whom are pictured on the catalog cover, and four horses from last year's March sale, which are on the Road to the Kentucky Derby Presented by Yum! Brands (G1).

This year's catalog of 674 entries—a 10% increase over the 611 entered last year—was reduced by 144 withdrawals as of the end of business March 11.

Topped by a Smart Strike colt purchased by Lane's End Bloodstock for $1.7 million, last year's sale resulted in 320 horses grossing $51,288,000, a decline of 7% from the 2015 auction. Last year's average of $160,275 represented a 6% decline, and the median fell 2% to $102,500.

Wojciechowski said OBS expanded the March sale in an effort to offer another buying or selling opportunity for horses being pointed toward the OBS April sale, and buyers and consignors gain an added level of comfort each year by having a more diverse group of horses to select from.

"A lot of times, with a smaller catalog people stay away because there just is not the selection," the OBS executive said. "We expanded the March sale because we believed buyers wanted selection and an opportunity to look at a lot of horses. That helps buyers and sellers.

"It is a great mix of the very top end, as far as physicals and pedigrees and that next level of horse that doesn't have quite the pedigree of some others, but is a good athlete."

While there is little doubt the continued demand at the top that has led buyers to pay premium prices for the lots perceived to have the greatest racing potential won't continue, Wojciechowski and others hope that the broader array of horses on offer will provide a boost to the middle market that has shown weakness during the last year.

"I believe we will see good demand at the high end and we're hoping to see some of that middle market return here," Wojciechowski said.

"The middle-market horses, some with off-the-wall pedigrees, sold very well at Fasig-Tipton," Dunne noted. "You would look at them on paper (catalog page) and say, 'What are they doing in this sale?' and then they sold the hair off them."

Consignor Niall Brennan said the importance of the middle market to the overall breeding and sales industry cannot be understated.

"The Fasig-Tipton sale didn't surprise anybody," Brennan said. "It was very strong at the top, as people continued to be very selective. But when (the) March (sale) opens up, you really hope for a middle market, with more horses moving in the $50,000-150,000 price range.

"We need to see more of a middle market for this business to survive, because so many people rely upon this. We don't need to see continued polarization at the March and April sales."

Brennan said the middle market could be helped by more buyers setting their sights lower than the very top, especially since those horses have a limited buying bench.

"You have to be looking at the ones you think you have a chance to buy," Brennan said of buyers unlikely to be able to afford the very top offerings. "If they just look at the ones out of their price range, they are going to end up buying nothing."

With sessions beginning at 10:30 a.m. ET daily, Hips 1-338 will be offered Tuesday and Hips 339-677 will go through the ring Wednesday. The sale will be streamed live via the OBS website and BloodHorse.com.

The catalog is available online via the OBS website, with a sortable master index that includes searchable pedigree and consignor information, as well as access to pedigree updates occurring since the catalog was printed.

The iPad version of the catalog can be accessed via the equineline Sales Catalog App. The app allows users to download and view the catalog, receive updates and results, record notes, and also provides innovative search, sorting, and rating capability. For more information and downloads go to: http://www.equineline.com/SalesCatalogApp/