New-York tribune., 1909-10-05
PRICES BREAK SHARPLY.
Precedent on Local Cotton Exchange
Upset

There was upset to precedent the local Cotton
Exchange yesterday, when in the face OF the most
bulsh condition report ever issued by the govern
met with the single exception of 1902 prices of the
various options broke sharply, the declines ranging
from u TO 20 points. 20 cents 81 bale
The break was generally attributed to heavy in
side selling on the part of professional traders and
other large interests it being believed that the bull
pool thought il good time to take advantage of
the general bullish sentiment TO unload a part at
least OF their holdings. estimated at one million
bales. Whatever the cause. the announcement Of
the governments figures followed by heavy
realizing sales. which the bulls apparently made
no effort prevent and in the first half hour fol-
lowing the publication of the report more than
Us coo bales were thrown the market. The bears
continued 10 hammer the market throughout the
afternoon, and although there We're occasional raj
lies prices quickly reacted again. and the close
showed decline OF from to q points from the
high figures OF the day in the various options.
The market had opened steady. at an advance of
from 10 i points under the influence OF the gov
eTnment's ginning report which showed 4 smaller
quantity turned ont than had been generally ex-
pected- There some selling on the bulge but
covering by shorts and further heavy buying by the
bulls carried prices upward again until just before
the governments condition figures were announced
they reached the high point of the day. In the
break that followed all the early advance was
quickly lost and for the rest Of the day prices how
cred around Saturdays closing figures
Some experts figured that the governments re-
port Indicated crop Of not more than 100000
bales. which they said meant virtually a famine in
cotton. Others. however believed that the final
yield would be considerably in excess of this esti-
mate. and declared that with the large carry-over
OF Old stocks the amount OF cotton available for
The years consumption would be sufficient to meet
al demands without esta ablishing extravagant
prices The worlds requirements are estimated at
approximately 13,5O0OOO bales. The crop last year
was I3S00OOO bales
II had been generally expected that the govern
ments condition figures would show a consider
able falling of from the preceding months report
but the condition OF 5S5 was lower than had been
looked for by any Of the traders. 1t compares
with 63,7 last month and 697 a year ago The most
bulish feature Of the report is the fact that the
sections which produce the most cotton are shown
10 have suffered the greatest deterioration Texas
for instance, which produces about Is per cent Of
the total crop hes a condition. according TO the
report. OF only 90 per cent, against 50 last month
compared with the ten-year average Of 63 per
cent. Little Improvement IS looked for from now
until the end of the season, which usually comes
about November J. that being the average date of
killing frosts.
} New Orleans. Oct Anew Orleans longs un-
loaded cotton this morning and sent the market
down 20 points. The first tendency of the market
was 10 advance January went from 1913 cents TO
la-53 cents, and then. with other options went down
under heavy realizing sales to a level % points
lower New high records for the season were es-
tablished in the advance which Immediately fol-
lowed the condition figures
New York was a heavy seller IN this market
A report that prominent New Orleans bull oper-
ator. now in New York was one Of the heaviest
sellers resulted in realizing sales by many traders
who had been holding their cotton for some time