US Pinhooking Market Nears Tipping Point

The machinations of the US yearling market correlating to the 2YO-In-Training sales appears to be reaching an interesting inflection point, reports bloodhorse.com A simple analysis of the past three years of 2YO-In-Training auction results not only shows a dramatic wave but appears driven by a surging yearling market. So inevitably what gives first? Pinhooked yearlings in the US reaped a 62% ROR this year, up 58% on 2020 (and not surprising given COVID implications), while 2019 sat at a 39% ROR. So, with an increasingly astute pinhookers brigade basing everything on ROR relative to yearling prices, will the yearling market continue its seemingly unimpeded surge this year? Experienced pinhooker Nick de Meric of Meric Sales weighs in, "You don't want to react to what has happened but instead to what you think is going to happen. The result of a strong 2-year-old cycle means the yearling sales will be more competitive That means you have to look at more horses and attend more sales. Our vets will make out very well because we'll be looking at more we'd like to buy but maybe can't, but this is what we do. We roll up our sleeves and wade into the middle of it." The sweet spot, based on this year's 2YO In Training Sales appears to be for yearlings in the US$40,000 - US$75,000 range. Yearlings bought in the US$40,000 - US$49,000 range produced the greatest ROR at 109% with yearlings bought in the US$50,000 - US$74,999 bracket upped by a ROR of 68% as yearlings. de Meric concludes, "One truism about the 2-year-old market is that we provide so much information that everyone knows who the good ones are. I'd rather pay a little more on the ones we really like than get a bargain on one I'm lukewarm on. We'll swing on the ones we think are special. It will be tough in the yearling market. There is no doubt about that."

US yearling sales could surge (pic: keeneland.com/sales)