COMMENT

AN expanded catalogue meant that this year’s sale was going to have its work cut out to match the returns from 12 months ago and that proved to the be case through the first part of the September Yearling Sale where trade was of a rather selective variety.

At the top of the market, demand for the best lots was at least as strong as ever with the number of six-figure lots improving from seven to 10 and there wasn’t a significant change in the number of horses making at least €50,000. In 2017 a total of 50 managed that feat, and that number dropped by just four to 46 this week.

However, it was tougher going in the middle market and elsewhere.

Twelve months ago this sale produced 103 lots who made between €30,000 to €49,000. This number dropped to 77 this year which would provide clear evidence that it was harder going in the middle market and elsewhere.

Market selectivity is nothing new but an upswing in the foal crop numbers has exacerbated that characteristic and it is fair to say that a significant proportion of the extra horses now coming up for auction are competing at a level of the market where demand has been somewhat subdued and contracting for the last couple of years.

BREXIT UNCERTAINTY

Furthermore, the longstanding issue of Brexit is looming ever larger on the horizon and the uncertainty and unrest created by this issue can’t be a help to the market either. Indeed, a combination of Brexit and supply outrunning demand is going to lead to some challenging trading conditions.

The activity of the leading buyers remained broadly similar to last year and in terms of the final figures there is some perspective required as the average and the median will both go down as second highest in this sale’s history.

However, the sharp drop in the clearance rate is something that everyone needs to take notice of and the market has given the industry as a whole a very clear message that supply has outpaced demand and a correction in this imbalance is needed.

In his end of sale statement, Tattersalls Ireland CEO Matt Mitchell commented: “It has to be recognised that the market remains select. The inclusion of an extra 73 (15%) horses catalogued over the last two days was not matched by buyer demand.

“The current market conditions will dictate that the numbers catalogued need to be both selective and limited in terms of quality and pedigree.”