The Birmingham age-herald., 1904-06-04
cothran 6 Co.'s Market Letter.

Cotton. time week ago a eonsid- erable portion of the cotton belt was suf- fering form drought of several weeks dur ation, and the outlook was far from en- couraging.
 Shorts covered freely. knowing that without rains this week there would be an exciting market When operators came down after the three days holiday on Tuesday they learner that showers had fallen where needed and similar con ditions have existed nearly every day this week. The actual record of rainfall will not be available until early next week. but every indicaHon furnished by weather map would lead to the belief that many counties without moisture have been relieved and that the outlook gener- ally has been improved. As the market is now controlled by weather conditions rain proved to be all that was necessary to bring about an extensive decline in prices.
 New crop options worked as low as 10h cents losing about F cent in the four days trading Today the report of the Financial Chronicle that cotton acreage had been increased this year over 1118 per cent and that the geneal start of the crop is better than last year, added depression factor. but prices appear to have reached level where resistance Is being offered to selling pressure.
 That is the European buying of dis tant months particularly October cotton on basis of 10la cents and below Is now decided factor in the making of prices. The feature of the week has been. ihe extensive decline in July cotton but this has not attractd general attention from commission houeses in that customers have been asked to avoid that option as much as possible in their operations.
 Selling has been on an extensive scale
 
 eral hammering have proved more reck- less than anything seen in the market since the January imitation in the other direction. During the January craze it seemed as though cotton never would stop going up, but there came day of reckoning none the less. In the same way cotton now seems to have no value and 50 and 75 points are taken from quo. tations without very much difficulty. But cotton at the present time Is worth all that 1t is selling for and 1t is more than likely that an awakening to this fact will bring about sharp rally in prices.
 Everything now depends upon the new crop. It is expected that the June re- port due tomorrow will show a liberal in- crease in acreage, and a condition above 7S and below S2. The average opinion on the floor is that while the figures might possibly be in the 70s, the condition is not 
 been so extensive that it would be ex- tremely unwise to remain short of new crop options at this level.
 Wheat-Sentiment was bullish on the heavy rains In the southwest and while there was an early dip in prices they were quickly regained, the strength in corn figuring in a bullsh way, while the modern miller reported also that of Jones, were taken quite seriously that or the latter inducing shorts to cover very freely and starting market upwards to new high levels. A number of outside buying orders poured in and the closing was excited. with a prospect of prices working higher, although we do not favor purchases, but on the contrary believe sales should be made in further ad- vances.
 Corn-There was a strong start for the futures, and sample lots were in de- mand following yesterdays large cash business while the futures were heavily bought on the wet weather in the belt. with country acceptances light and rains predicted, with some reports of damage from Iowa The strength in wheat was a bull help and the closing was very strong at top prices We feel bullish on this cereal and favor pur- chases on dips.
 Oats-Were very strong in sympathy with wheat and corn and there were re- ports from Iowa of the plant turning yellow. Commossion houses were good buyers, the closing being strong with sentiment bullish.
 Provisions-There was selling of lard and ribs early by packers, but support was extended to ribs and 1t did not take long for pork and lard to turn upwards. On further advances we look for a good class of selling to appear.