The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1910-06-08
SUMTER s. c., WEDNESDAY. JUNE 8, 1910
New Series-VOl. XXI. 10. 80.
COTTON MARKET SITUATUr
CLOSE ATTENTION CIV ~ f(
NEW CROP PROSP'
Bears Profess Conf { in Ap-
proach of Low rices-BuIls
Combat These y .ons.

New Orleans. ne 5.-The cot
ton this week will be more of a
weather affair than it has been this
season, although, of course, the July
deal will always command more or
less attention. The time has now
| come when both sides of the market
are watching the new crop with the
| greatest anxiety. the bears feeling
that they are beginning to see a
chance of breaking the power Of the
bulls, given them by the short supply
of cotton. Bulls are not yet ready to
admit this, but the good accounts
| from the cotton country are causing
| them to talk about a Temporary de-
| cline, preceding the permanent ad-
| vance which they consider is newt
| able in the new crop, no matter how
large the yield may be.
| The first few days of June have
been most favorable to the progress
Of the crop.
| Should the weather this week be
as favorable there will be talk of
bearish July condition report and
short lines in the new crop months
will be increased. The conservative
elements in the markets ,will hold
aloof from such measurements, for
it knows that this will be a season of
crop scares simply because Of the
famine and that the building up of ex-
tensive short interest only makes the
crop scares possible. On the other
hand it can not be expected that the
bulls will support the new crop with
crop news continuing favorable. Bulls
appear to be pleased with the idea
of buying big quantities of cheap cot
ton and not a few of them would
welcome lower prices simply because
they would afford a better buying ba-
| sis.
| Before this week is very old rain
will be needed in many sections.
Should showers fail, the bears will
still be able to claim that weather
conditions are with them. Should dry
weather prevail, the bulls will be
ready to breed another drought scare.
For the last few days Texas has been
sending In reports of unusual tenn
peratures. Texas crop writer's are all
ready predicting complaints of dam
age by hot winds. The market is sell
dom able to stay down when these
stories are coming from reliable
sources. Spectators who are trying
to make quick returns will have to
pay considerable attention to these
possibilities
| Outside of the weather the trade
Will be interested chiefly in the July
position. 1t has been rumored thai
the bull clique will send a representa-
tive to this market to take care of
! July and early in the week it is en-
| urely probable the gossip will cir
culate to the effect that Frank 3.
| Hayne has been selected as the mem
Der Of the pool to come TO New Or
! leans.
| a large short interest exists in
July, the local stock is small and
stocks in the territory tributory TO
New Orleans are also small, thus fur
nishing the proper conditions for a
| July squeeze"
| a large straddle business between
| Liverpool and Now Orleans was done
some time ago by traders, who sold
the fall months here and bought win
ter months in Liverpool at about ff-
ty points difference This diff
terence commenced to widen
| last week and these options
Will be closely watched this week for
further widening. This would be
taken advantage Of instantly to undo
the straddles, thereby resulting in
heavy trading and leading to stories
of American selling in the English
market, and bull support in the local
market.
Those who know of the straddlo in
tereSt between the two markets will
draw safer conclusions than those
who are not as we'll informed.
Bears last made boasts that this
week they would put October below
i cents. Should this be made good.
considerable investment buying Of
the new crops will be seen. Many
brokers' already have their orders -
FOLLOW this course in case the price
does take such a turn.
This week the conflict of opinion