The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1904-05-14
Ware g. IeIand's
Cotton Letter.

Raleigh. n. c., May 13.-While
prices have been gradually working
| lower this week, there has been no ap-
preciable change in the cotton situa
ton. Liverpool continues to be the
weak sister, and Notwithstanding the
fact that the cotton shortage exists in
Great Britain, trade conditions there
do not appear such as to warrant pur-
chases for advancing prices. This has
been the nature of the case for some
weeks and developments recently have
thrown no additional light on the out
look Slowly. and with frequent up
turns, the price of the old crop posi-
tons appear to be working lower and
without decided speculative change,
or unfavorable crop news, there APP
pears to be no inducement to buy July
cotton under 13 y c, than was the case
over that figure. 1t has been, and still
is, a most unsatisfactory market to
trade i'm and one in which profits are
difficult to reap. But facts are facts
and must be recognized, and since Liv-
erpool is not an encouraging factor in
the situation, it would be foolish to
advise purchases as long as the situa-
ton remains in les present apathetiC
condition. On the other hand, there
is a great deal to be said against the
short selling of the new crop options.
1t does not show very much gray mat
ter or originality to insist upon the
bull side of the market from year to
year, and we do not want our custo-
mers to feel that we are always to be
found on the same side. But the fact
of the matter is that every indication
points to extremely limited reserves of
old cotton to be carried into the new
year. Had it not been for the war in
the Far East, and the general trade
reaction in this country cotton would
not be selling at 10 " c on crop of
10,250, 600 bales. In addition to the
light reserves there will be an enor-
nous demand for the first of the new
crop. irrespective of the yield itself.
Stocks of raw material and manu-
featured goods are both limited and
this inSures an active demand for the
first pickngs. The new crop positions
are selling at a discount of two cents,
and over under the present price of
spot cotton, and the condition of the
growing crop is not at all brilliant.
Everything now depends upon the
progress of the next crop. In the
weekly weather report this week the
Carolinas, Georgia. Alabama, and por-
tons of Mississippi reported important
sections suffering for rain. For three
months during the winter there was
serious drought in the Southwest,
which resulted in killing the whole
crop, and this area has been replanted
to cotton. When rains began in the
Southwest they came in such abund-
ance that the deficiency has all been
made up and some sections now show
several inches excess rainfall. 1t is
still raining in these regions and the
weather report states that Texas fields
are getting very grassy. You need not
be told that this is one of the worst
things that can happen to the crop.
With the reports stating that whole
fields are dying in the Atlantic States,
we are simply quoting the words of the
report itself, and grassy fields in parts
of Texas, ii does not seem as though
conditions were all that they should
be to raise a bumper crop. All this
may be changed in a day, but until it
is changed there is likely to be a howl
from the Atlantic coast region and it
would not be safe to be short of the
new crop positions under these condi-
tons. AS we said last week, we would
like to be able to. get October under
eleven cents. The market for cotton
futures closed quiet.
WARE & LELAND.