The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-03-25
COTTON HESITATES
IN DULL SESSION
Shorts Continue Covering and q
Trailing Long Interest
Begins TO Form.
HEDGE SALES IN NEW CROP
Unusual Development Arising
From Fear Of Manipulation
in Near Months.
HEDGE SALES IN NEW CROP

Cotton was dull and steady yesterday
with little feature to the news upon which
the operations for tho day were based
There was the usual covering In the near
months March held its premium over
May and May gained slightly over July
lhere was some heavy buying Of May
and selling OF July. amounting TO about
5000 bales each way. which was thought
10 represent tho reversing Of y switch
that had gone wrong. several times May
WAS forced up to 1880. but contracts
we're In more liberal supply and prices
slowly reacted
There Ia good evidence that the acute
congestion OF the technical position has
been relieved. Not only have shorts COW
cred freely but quite large trailing
clement has gone long. The buying has
besn based on the theory that II cotton
-ou,d not bc brought to New York on
March. which is at =, premium of so points
over May. the latter option would have 10
20 up and an automatic corner would be
he Inevitable result 1t Is overlooked that
N March there was a concentrated long
interest which was perfectly able to take
care OF itself. while In May there is a
large scattered trailing contingent which
would be inclined to liquidate on any
show OF weakness. and most certainly
would not take cotton even II II were of
much better quality than 10 at present In
he local certincated stock. The very
fact that the market In invulnerable from
the standpoint of heavy receipts exposes
=, 70 the danger Of being befriended by q
lons interest with more enthusiasm than
stamina
Tho danger Of the market TO the shor.
seller is quite apparent. and hedges
which are placed in this market by the
South and by Europe are being trans
ferred to the new crop months. notwith-
Standing the discount at which these posi-
tlon. are selling under the near months.
This policy looks absurd 10 a great many
who with some logic. avoid selling dis
count months simply because they are
that much nearer the bottom" A let
Ter hy one OF the Liverpool firms makes
the following defence Of these tactics:
II, is necessary. OF course. for many
persons TO hedge. and for such purposes
'or for straddllng) We still think that
new crops are the best sale. First. be-
'ause the market seems more inclined 20
advance than to decline. and on an advance
The old crops nearly always improve
the most second because old crop posi-
lions are In some danger Of being nanlp-
llated third. because II Is difficult 10
ali crop which In not yet In the ground.
and such crop news az We are likely
% receive for the next few weeks proba-
oily will BIS confined TO reports that the
acreage Is being increased
Sales based upon this principle proba-
bly, account for the relative weakness OF
n. new crop months. The weather. Of
curse, has turned quite favorable. and
tn clear skies and higher temperatures
apd progress will be made with farm
81 Mt kau ia
% 60 their seed into the ground on ac-
count Of tho fear that seed might be
scarce for replanting.
sl"' cotton was unchanged. Mddlnc
Hp'l13', n SOC Spot cotton in the pr!n-
'lpil southern markets was unchangc
% &c lower. Futures closed steady.
Lhou, I po.nts lower.