Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-09-28
The World Of
Finance and Trade
NEW YORK COTTON
ANOTHER WAVE OF SELLING
THIS MORNING.

Special Dispatch TO The STIR.
NEW YORK. September 2s.-while liqui-
dation was less extensive there was another
of selling this morning that carried
most months three or four points below the
low level of yesterday. There was an early
advance at the opening, due to short cover
ing fairly steady Liverpool market.
But the rise failed to hold, and when pro-
fessionals saw the lack of support they be-
gan to undermine the quotation list. and
this brought out enough cotton from weak
holders to start further break. The low
point on January yesterday was 10.7. That
option sold high 1918 early. and then
plunged down to 1000 before there was
halt. From 1o.G9 rally to ~ took place.
but one more effort was made to force out
cotton before traders found there was too
much cotton wanted to make short selling
safe operation. The covering then caused
rally to 1918 for January, with other
months steady in proportion. Commission
houses sold cotton on stop loss orders, but
there was not the weakness noticeable dur
Ing the morning, that proved a feature Of
the late trading yesterday. The buying was
not general. however. owing to uncertainty
over notices tomorrow and fear that an
other day of liquidation was in store for the
market before the level of prices reached
point where the combination OF buying by
spinnerS and absence of offerings by the
south offset the wave Of selling by specu-
lative holders and those interested In get
ting the price lower
Both these factors were in evidence, and
led to buying on a moderate scale by con-
servative interests. Those in close touch
with the demand for cotton among spin
hers. as well as with the amount of cotton
optalnable In the south, reported a demand
tnat Is daily increasing in volume and
supply that has for the moment decreased
owing to the indisposition of the south to
sell on the decline of 30 points. 1t was the
inability to buy cotton on a satisfactory
oasis In the south, when futures here were
below Hoy cents, that led to the recent ad-
vance TO IL cents. In view of this fact
operatorsswere inclined to regard the posi-
ton as stronger on the decline though an
other attempt to unload contracts might
readily cause further break
The recent decline from IL 03 for January
10 lo59 has been the result of the technical
position OF the future market and not of q
change In the cotton situation as a whole
AS has been pointed out before the future
market Is long and not a short one
owing to the bad crop accounts and the be-
lief In moderate crop. The absence of
short selling has been subject of COM
ment. Few have been willing to sell cotton
short. One extensive short interest is be-
Heved to exist, but this Is the striking ex-
an abundance of cotton, but when 1t comes
to selling shortly they are very timid. This
leaves the weakest kind of market when
holders all try to sell at the same time.
There Is no big short interest to absorb
the cotton and take 1t from sellers. But
after the cotton has been sold and the price
reaches point where spinners will buy
freely and the south is not as ready to sell,
the whole operation is repeated, and the
market moves up about as easily as 1t de-
clined.
This morning Liverpool was rather steady
early and then declined. closing at about
the low figures. There was an evident de-
sire on the part of the shorts here to cover,
and enough cotton had been sold on the
rise to bring in buying orders from some of
the larger interests. The discount on Oc-
tober is now great enough to lead many
spot houses to carry cotton over to Deem
Der simply for the carrying charge.
This will lead to less urgent liquidation
tomorrow. many believe. though the cotton
is still here in New York to be sold at some
distant date. Below 102 cents 1t is believed
there will be buying by spinners out of the
New York stock. The market was steady
on the decline