Midlantic Sale Forecast: More of the Same

The bull market seen in the previous 2-year-old in training sales is expected to continue at the May 22-23 Fasig-Tipton Midlantic sale, with high hopes that the strong top-end market will have a trickle-down effect on the middle and bottom price points.

The sale at the Maryland State Fairgrounds in Timonium begins at 11 a.m. EDT daily. Of the 572 head cataloged, 117 had been withdrawn through mid-day May 20.

Fasig-Tipton president Boyd Browning said the auction has gained in stature as Midlantic graduates have achieved success on the racetrack and consignors brought another solid group to market this year.

"This sale has gotten to the point where it is a significant sale on the calendar for bother buyers and sellers," Browning said. "Consignors have continued to support us with nice horses and I think it's a good group overall."

Browning said one of the strengths of the sale is its appeal to horseman based in the Northeast and Mid-Atlantic regions who might not otherwise attend one of the other major sales in Florida as well as its diversity of offerings.

"There is something for everybody—whatever you need, we've got it," the executive said. "That's one of the strengths of this sale."

The Midlantic auction has a greater regional flavor among its entries and is also a lure for consignors with late-developing 2-year-olds not ready for one of the early season sales.

The sale had its first seven-figure transaction two years ago when a Smart Strike filly fetched a sale record $1.25 million and last year an Uncle Mo   filly also sold for $1 million. This year's catalog cover boy is Malagacy, a colt bought from de Meric Sales for $190,000 who won the Rebel Stakes (G2) for Sumaya U.S. Stable.

With a vastly larger catalog last year, Fasig-Tipton reported 337 horses sold for $23,136,400, up 2% from the previous year, with the average and median prices of $68,654 and $32,000, respectively, representing downturns of 23% and 29% from their record levels of 2015.

Consignor Nick de Meric is among those hoping for a continuation of the strong demand seen elsewhere this year, including last month's Ocala Breeders' Sales' spring sale that saw broad-based gains.

"I'm hoping it will carry on from the reasonably buoyant market that we experienced at OBS in April," said de Meric. "This sale usually goes in lockstep with that. I think it will be a good market; there is still an appetite for good 2-year-olds. Hopefully we can get some of the blue-collar types moved satisfactorily. The top-end horses are always going to do well but if there is some depth to the market that is what we all like to see."

The Florida-based horseman said the Maryland sale has a unique quality that draws a broader buying bench than many of the other 2-year-old sales.

"It's a great venue. There are people we see at this sale we don't see at the other sales, including a lot of Northeastern-based trainers," he said.

"You will see middle market buyers who didn't go to the Florida sales and are only going to buy a few," said consignor Niall Brennan. "They can shop here and find what they want. People in this area have a lot of options where to run."

While he would like to see a stronger market for horses in the lower price ranges, Brennan said polarization will likely to continue Monday and Tuesday.

"The market is so polarized they are overpaying for the top horses and there is no market at the bottom end," Brennan said. "There is no balance. At the top end, it's going to be the same few buyers. That is not going to change."

Jimbo Gladwell of Top Line Sales said the strength of the juvenile auctions bodes well for the summer and fall yearling sales.

"The trade has been huge (in 2-year-old sales)," he said. "You can't even believe how strong the top has been. The middle and bottom markets have also been good. We got through the presidential election and people are seeing some stability and want to re-invest and start playing again. We targeted this sale and have done really in the past here. I think it will be really tough for the ones you want at the upcoming yearling sales."

Kevin McKathan of McKathan Bros. said there appears to be a broad group of buyers that still have not filled their orders as a result of being outbid at other sales and hopes they show up at the Fasig-Tipton sale.

"A lot of people haven't been able to get what they wanted because they cost so much," he said. "Rather than dropping back and punting we hope they come in here swinging. If they fall on your horse there is plenty of money out there. There is no reason to believe it will change right now."

McKathan said his consignment consists of horses specifically targeted for Midlantic.

"This seems to be a perfect spot for them. We like to bring the right horses to the right places."