Keeneland November Sale Concludes

The Keeneland November Breeding Stock Sale concluded its 13-day run in Lexington Sunday with figures largely in line with its 12-day 2015 renewal and a continuation of the polarization in the marketplace, with strong demand at the top level, but less competition for lower-tiered horses.

In all, Keeneland sold 2,653 horses during the November sale for a gross of $215,213,000. The cumulative average of $81,121 decreased 4.6% from last year's $85,033, while the median fell 16.67% to $25,000 from $30,000 in 2015.

A total of 19 offerings topped the million-dollar mark this year, led by 2010 GI Breeders' Cup Distaff winner Unrivaled Belle (Unbridled's Song), who sold in foal to leading sire Tapit for $3.8 million to Mandy Pope's Whisper Hill Farm. The auction also featured its first seven-figure second week transaction when the racing and broodmare prospect Uptown Twirl (Twirling Candy) sold for $1.075 million to Three Chimneys Farm. The sale of that multiple stakes winner punctuated a strong horses of racing age section in the auction's Book 4, which also featured the dispersal of Ernie Semersky and Dory Newell's Conquest Stables.

“I thought the sale went very well,” Keeneland's Director of Sales Geoffrey Russell commented at the close of business Sunday. “It started off on a good note with the Book 1 horses–the top-quality horses received premium reward and that continued on into the Conquest dispersal and a very strong horses of racing age section in Book 4.”

The November sale included a diverse buying bench at the top of the market, with the 19 seven-figure lots being purchased by 14 different buying groups and with representation from the U.S., Australia, China, Dubai, Ireland and Japan.

“Participation by a deep buying bench comprising domestic and international interests was as strong as ever, with enthusiastic duels from multiple bidders who were willing to stretch their budgets for the premier horses,” commented Keeneland Vice President of Racing and Sales Bob Elliston. “The horses of racing age portion of the sale also created energy and successfully attracted leading trainers and end-users. The money is here, but you must have something of value.”

The Conquest Stables dispersal saw 100 horses sell for $11,207,500, led by Grade I winner My Conquestadory (Artie Schiller), who sold in foal to Tapit for $1.5 million to SF Bloodstock and Newgate Stud.

Lane's End, which consigned the Conquest Stables dispersal, ranked as the sale's leading consignor, selling 265 horses for $26,030,300. Whisper Hill Farm was the leading buyer by gross, with four horses purchased for $7.2 million.

Buyers at the November sale remained selective and activity at the top of the market didn't translate into demand in the auction's later books.

“Buyers in November are aiming at a certain criteria and a certain product,” Russell said. “They are looking for mares in foal to Tapit and they are looking for graded stakes winners and when they don't get it, they just walk away, they don't go down to the next level.”

Two weanlings sold for seven figures early in the November sale, with Coolmore's M.V. Magnier signing the ticket at $1.45 million for a son of War Front and Chris Baccari going to $1.05 million for a colt by Tapit. But the foal market also showed signs of polarization, according to Russell.

“I thought the foal market was very strong this year in the early part,” Russell said. “I think there is a divide, and we saw it in September, there is a divide in the marketplace. Those horses who meet the criteria that everyone is looking for are well-received and bring premiums and those that don't, don't.”

Russell admitted this was an industry-wide, international, issue.

“There is plenty of money for horses that meet the market, but it's a different story for horses that don't meet the criteria set by the market,” Russell said. “Buyers are sending a clear message: they want quality. This is an industry issue worldwide, not just in America. The number of annual sale days is ticking up again. This is a troubling sign given buyers' selectivity. We as an industry don't want to forget the difficult lessons we learned from a similar situation just a few years ago.”

Craig Bandoroff of Denali Stud, which sold the $1.05 million Lassofthemohicans (Indian Charlie), acknowledged selling got more difficult as the November sale marched through its second week.

“We had a very good sale in Books 1 and 2; quality sold well,” Bandoroff said. “Once you got to Book 4, to me it was like somebody popped a balloon. I would say the market is a lot thinner than you'd like it to be. It's bad [for breeders] because you're not covering costs on horses. Unfortunately, there are some stallion programs that are encouraging it. It's keeping horses in production that don't need to be kept in production.”

Bandoroff continued, “Our business is good. I'm not a doom and gloomer by any means. But there are definitely some signs on the horizon that this [market] is not healthy all the way through.”

During Sunday's final session of the November sale, 122 horses sold for $609,900, for an average of $4,999 and a median of $3,000. A weanling filly by Shanghai Bobby (hip 4567) brought the day's top price, selling for $35,000 to Teresa Little. Out of stakes winner Rhome Magic (Magic Cat), the dark bay filly was consigned by Darby Dan as agent for the complete dispersal of Thomas McClay.