MARKET VIEW

A MORE selective market and what could termed a more conservative approach by those buying to resell were among the features of this week’s Goffs November Foal Sale.

At times, this autumn’s round of yearling sales were challenging and this was always going to be reflected in the foal market. One of the most notable aspects of the yearling trade was the muted level of demand that existed at the lower end of the market and this, in turn, was central to a low-key opening to this week’s foal sale.

The first session produced a clearance rate of just 47% and it was 61% the following day, but as the quality improved the number of horses sold also picked up to give rise to 73 and 83% clearance rates on the final two days.

When purchasing with next year’s yearling sales in mind, pinhookers must consider the market that they will be selling back into and the sales at which they aspire to reoffer their stock.

Given that those at the lower end of the market struggled in the autumn demand at this level was consequently muted.

While the yearling trade is always central to the performance of the foal sales another point to consider is the level of supply to the market place.

This has grown steadily over the last three years and an increase in numbers has, once again, seen supply outrun demand which, in turn, means demand is overextended and this affords purchasers an appreciably greater level of selectivity.

By way of example, there were 872 foals offered at this sale two years ago and 742 were sold, but the numbers offered crept up to 1041 this year yet the number of horses sold came in at 694.

In terms of the level of activity at various levels of the market, it did appear that the level of spending this year was of a more considered variety.

A guide to the levels of expenditure can be taken from comparing various sectors of the market.

Firstly, demand at the top of the market wasn’t at all dissimilar to 2015 with the number of lots making at least €100,000 coming in at 31 as against 37 last year. Possibly a more representative bracket is between €30,000 to €50,000 and there were 112 foals sold within this range compared to 140 last year.

In short, various trends at the yearling sales were manifested this week and allied to this the perils of an oversupplied market place were illustrated to quite a stark extent through the first three days of the sale.

Demand has been spread too thinly and the first three sessions would demonstrate that any further increase in foal crop sizes in the coming years would not be a positive development.