Commercial breeders were better off financially following the Fasig-Tipton Kentucky July select yearling sale than they were in 2011. But pinhookers didn't fare as well they did a year ago.
The rate of return for pinhookers on select juveniles rose in 2012 read blog
Stories about Thoroughbred auctions focus a lot on key business figures such as gross, average price, and median price. But for sellers, the most important numbers are the ones that show whether or not they made a profit.
Pinhookers' 2-year-olds are more profitable because they spent less to acquire them as yearlings.
Pinhookers' profits fall at at the select yearling sale. Commercial breeder's percentage of profitable horses remains the same.
Many will rely on the same buying strategies they used in 2009 and will continue to proceed with caution.
Rate of return on investment rises to 50.7% even though the financial risk increased.
They spent more money to buy their stock as yearlings, so they will need to sell their horses for more money as 2-year-olds.
The rate of return on their investment drops to 47.1%, but the percentage of horses offered that were profitable is the same as last year.
Based on yearling average, financial risk has been cut for Barretts March auction in Southern California.
Rate of return on investment grows, rising to 91.9% from only 39% for the 2009 edition of the auction.
Cutting yearling purchase cost is the key, and consignors to the Fasig-Tipton Florida sale are hoping that a similar strategy works there.
With prices tumbling at the early select sales of 2-year-olds in training, pinhookers, who provide most of the stock for the auctions, already are thinking about how they are going to approach their next buying-and-selling cycle. It's not good news for yearling consignors because, in general, pinhookers plan to be much less aggressive when buying young horses later this year.
If the recent Ocala Breeders' Sales Co. (OBS) February select sale of 2-year-olds in training was any indication, it's going to be a tough year for yearling-to-juvenile pinhookers. The rate of return (ROR) on their investment, 30.7%, ranked among their worst ever based on figures that date back to 1990. It was the weakest since the ROR dropped to its lowest point during the 20-year period of 17.1% in 1993.
- By Ron Mitchell
That the strength of the yearling market held strong throughout the marathon Keeneland September yearling sale is nothing short of, as Keeneland sales director Geoffrey Russell is wont to say, "phenomenal."
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