The Birmingham age-herald., 1904-07-23
cothran e Co.'S Market Letter.

Cotton-Suffered a moderate decline to- day. The Liverpool market disappointing at the hour of our opening lost steadily in values. finally closing points lower on winter months as a result of the days trading. Cables were unfavorable in tone and spots lost point sales of 6000 bales
 In deference to the unsatisfactory for eign market, an excellent government weather report and absence of unfavor- able crop news. lower prices prevailed in all options at our opening.
 The fresh selling induced was met with a fair amount of purchasing orders and prices for time remained steady at the decline, but assumed lower levels later in the session.
 Many have expressed surprise at the ac tion of the market under the avalanche of favorable crop news where declines should logically have followed, advances have as frequently occurred The reason is given that the short interest Is very large and constant covering causes higher prices.
 This. we think, is true, but not the whole truth for the cause is more directly due to the smallness of the speculative long interest. The bulk of contracts on that side are held out of the market, and will so remain until they can be sub stituted for actual cotton; hence when shorts become nervous, one of the few speculative long contracts must supply his wants or a fresh seller be found and fresh sellers are scarce If 1t is true, as said that everybody is already short to his limit.
 This leads to the conclusion that the market is more than likely to be scalp ing affair until the stapie peg:ns to move freely, or that time becomes imminent, 1t being unreasonable to expect the creation of an adequate speculative long interest unless a disaster of record breaking pro portions should happen to the crop and a complete reversal of sentiment follow.
 Wheat There was weak opening, the weather being more favorable, with Liverpool not showing any snap, while consols advanced 5-16 on Russia apologiz- ing to England. A great deal of long wheat came out, although rallies appeared occasionally, but the crowd were inclined to be bearish on the Modern Miller report and the expectation of a large movement. Cash prices were easy on 72 cars tomor- row and showed two cents decline in St. Louis Abel Rey of Paris estimates a French crop shortage of 10000 bushels. The closing was steady, and in the event of further declines appearing we would decidedly favor purchases.
 Corn.-Prices worked off on 344 cars for tomorrow, and there was some selling by chronic bears, who were aided by the weakness in wheat while there was selling by a St. Louis house. We feel friendly to this cereal, and look for good buying on dips.
 oats.-Good buying appeared. maybe taken by Howe but yesterdays buyers turned sellers, with wheat weakening and there was bear raid on September, although towards the close quite a stiff demand sprang up. We favor purchases of this cereal on all weak spots.
 Provisions.-Hogs were In large supply and lower, while the renewal of the strike came as great surprise as well as a disappointment to the trade, and start ed selling of product by tired holders. The closing was heavy. but we are rath- CT Inclined to look for strong support, should any further weakness develop. There is intense feeling against the strik- CTS and 1t Is hard to say how the matter will end.
 Stocks.-The stock market was an irreg- ular affair today. There was rally which we anticipated and one which we think will be wise to see some of the active stocks that show distribution for turn. These sales should only be made on strong spots and if the seller is ner- vous let him place small loss stop order so that he will feel safe.
 The market is resolving itself into A trading one and we believe that position will be the most prolific of good results We anticipate activity and specialtv movement occasionally both up and down
 The market is in a fairly good condition but some parts are vulnerable to bear at- tacks and they should be watched