The Montgomery advertiser., 1906-05-01
NEW ORLEANS COTTON LETTER.


By Private Wire to L0vcmnn 4 Co.,, 3e
 Commerce Street, Montgomery, Ala.
 New Orleans, La, April sO.-(Special.) April. which is always an off month in the cotton market. made it's exit from the speculative stage today, leav- ing a bullish cue for May, a month which generally brings forth some im- portant developments, either on one side or the other. Liverpool was fa- vorable today, closing steady at a net gain of point on futures. Spots there were unchanged. but sales reported as being total of 12.oo0 bales, figures indicative of good demand.
 In response to Liverpool, our market opened unchanged on the old and ports of good inquiry for spot cot ton, together with complaints of lack of moisture in many portions of the belt caused very steady feeling during the which had opened at 1f.1s, advanced to 11.22. with scarcely a downward ffuctuation. The fact that Miss Giles estimated the increase in acreage at only 6.2 per cent. over last year. also exerted bullish influence. Later in the day when a good spot demand was reported, with factors unwilling to sell except at an advance, the market again high as 11.25. There was some cover ing by nervous shorts before the close, which was firm at net gain for the day of II to 12 points on the old and 9 to 10 points on the new crop months. Spots were officially reported steady and 1-16c. higher on all grades. Ow- ing 10 the fact that little cotton was offering, sales were light amounting to only 450 bales of spots and 4,s00 bales to arrive. Middling cotton stands at Il 3-Sc.
 The cotton market has now arrived at point where some important de- velopments may shortly be expected. Well informed spot men predict heavier export movement out of this port during May than for the same pe- riod last year. when the total exports from New Orleans were 146,000 bales. From the way receipts are coming in, this would mean good sized loss in the local stock which stands today at ,000. compared with 1S1, 900 the cor responding day last year. Other ports are likely also to show a loss in stocks so that the total port stocks, which are now 600,000 bales, as compared with
 656.000 bales this day last year will probably show a considerable reduction | by the end of the month. Interior stocks have been steadily losing for course will be materially decreased, | during the coming month. Weather conditions, so far as we can judge | from the generality of reports coming l in from the country, have been favor
 able, and showers have lately occurred in sections where moisture is needed to help germination. Absence of outside speculation also favors the short side
 of the market, but bears are held in check by the fear that reduced port and
 interior stocks may lead to a squeeze if not in May, then in July, when the statistical position Till be such as to give the bull forces a decided advantage in any speculative contests that may
 be waged. Just at the present moment,
 the strongest bull feature is the good spot demand, but the question is wheth- CT this spot demand will be so active
 during the first part of May. At the beginning of mo nth. the spot demand
 rule hold good in the present case, long May, for the time being. find themselves deserted by their best ally. Considering all these circumstances, we think 1t best to take profits on strong periods. with view of replacing on any breaks that may occur from time to time. No permanent advance seems likely just yet.