The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-06-06
WEATHER CONTROLS
COTTON MARKET
The Bears Are Confident That
Prices Will Decline
CROP sCAREs FEARED
Low supply of Actual cotton Keeps the
Bulls in the Market and Both
Sides Are Now Watching the
Weather Closely

New Orleans, June solicitations are
that this week the cotton market will be
more of weather affair than it has yet
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 watch
Ing the new crop with the greatest anx-
iety, the bears feeling that they are be-
ginning 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 decline preceding the ad-
vance which they consider inevitable 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 bear
ish July condition report and short lines
in the new crop months will be increased.
The conservative element in the mar
ket will hold aloof from such move
ments for it knows that this will be sea-
son of crop scares, simply because of the
famine level to which the supply of raw
cotton is sinking. and that the building up
of extensive short interests only makes
the crop scares possible.
On tile other hand 1t cannot be expected
with crop news continuing favorable.
Bulls appear to be pleased with the
idea of buying huge quantities of cheap
cotton, and not few of them would
welcome lower prices simply because they
would afford better buying basis.
Before this week is very old rain will
be needed in many sections. Should show
ers fall the bears will still be able to
claim that weather conditions are with
them Should dry weather continue the
contrary effect would be felt on the bulls,
and they would breed another drouth
scare. For the last few days Texas has
been sending in accounts of unusual high
temperatures, some Texas crop writer's
are already predicting complaints of dam
age by hot winds. The market is seldom
able to stay down when these stories are
uiators who are trying to make quick
turns will have to pay considerable at
tertion to these possibilities.
Outside of the weather the trade will be
inter ested chiefly in the July position. 1t
has been rumored that the bull clique
will send a representative to this market
to take care of July. and early in the
week II is entirely probable that gossip
will circulate to the effect that Frank
b. tHayne 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 ter
ritory tributary to New Orleans are all
small, thus furnishing the proper condi-
lions for a July squeeze.
A large straddle business between Liv-
erpool and New Orleans was done some
time ago by traders who sold the fall
months here and bought winter months
in Liverpool at about so points difference.
This difference commenced to widen last
week, and these options will be closely
watched this week for further widening.
This would be taken advantage of in
starl!y to undo the straddles thereby re-
sultirg In heavy trading and leading to
stories of American selling in the English
marke. and bull support in the local mar
ket.
These who know of the straddle interest
between the two markets will draw safer
conclusions than those who are not so
well Informed.
Tears last week made boasts that this
week they would put October below 12c.
Should this be made good considerable In
vestment buying of the new crops will be
seen. Many brokers already have their
orders to follow this course In case the
price does take such a turn.
This week the conflict If opinion prom
isss 10 become intensified. A further de-
cline viii encourage bears. while lower
prices will encourage long buying of the
best character.