The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-08-01
WEATHER CONTROLS
THE COTTON MARKET
Bears Will Sell If Rain Falls
in Southwest
WAITING FOR REPORT
Government Figures on Condition OF
Cotton VIII BE Given Out Tuesday
and a Very Bullish Report
Is Then Expected

New Orleans, July 31.-With the open
ing of the cotton future markets this
week the first thing the trade will have
TO consider will be the weather over Sun
day in the west Bears discovered signs
of showers Saturday at points IN Texas
and Oklahoma and should showers DC
reported over any considerable area the
market will be open to heavy selling
movement.
Should the drouth continue many dis
appointed shorts will endeavor to cover
Following close upon the weather pros
pectus will come an effort to discount the
government report on condition whcn
Is due Tuesday morning.
Bulls contend that condition OF over
II per cent is impossible. Last month the
condition was S0.7 per cent. Many trad
ers believe the figures In the pending re-
port will be around IS per cent or slight
ly under 1t.
As soon as the report is known the
trade will be at liberty to discount the
conditions that have prevailed since July
Is, the date to which the August figures
carry the crop. That the weather up to
the 18th was bad no one denies. The
bears claim that In the eastern and cen
trail portions of the belt great improve
ments have been noted and they are
now very unwilling to acknowledge that
the crops of Texas and Oklahoma have
been damaged by warm dry weather as
much as the bulls claim.
The contes In the market will really
~ 10
thlbe two states. Oklahoma is much
more important this season than ever
before because the acreage planted was
large enough to put 1t among the most
important states OF the cotton belt.
The movement of new cotton will be
watched very closely this wsek for two
reasons. One is that the bears are ex-
pecting 1t to be heavy enough to be used
as a weapon.
1t will be directed against the bull
clique and any attempted operations on
its part in the August option In New
York. The other is that a large move
ment will in way be taken as proof
OF the contention of the bears that the
Texas crop is not as late as claimed by
the bulls.
The bulls will naturally insist II large
receipts of new cotton are seen that 1t
IL due to premature opening of cotton as
the result Of drouth and high tempera-
lures
General rains in the west would prob
ably cause severe break in the market
although they would check for the time
being the movement of new cotton to
market.
The bulls will go to the dry goods mar
ket for information constantly from now
on as there were Indications last week
that buyers were taking hold in more
general way
The dullness in finished cotton goods
has been a big drawback to those who
are trying to put cotton higher and any
solid encouragement from this quarter
will be Immediately made use of. The
spot or August position will be the cause
of much guess work as no authoritative
statement has yet come from the bull
clique concerning 1t.
The general supposition is that 1t will
be manipulated as much as the May and
July positions were. This would serve
as check on bearish operations.