Americus times-recorder. [volume] (Americus, Ga.) 1891-current, 1916-08-28
THE COTTON MARKET.

is interesting, and the following arti-
Gle on the prospect for September has
been issued by the Southern Cotton Re-
view:
The U. S. Department of Agricul-
tdre issued on August LIST the condition
report of the cotton crop as it stood
July 25th. That report was 72.3%s OF
a crop. The crop has gone through q
trying period since then, and has dete.
riorated steadily until the report to
lie issued September LIST ought to show
around $50, which means a cotton
famine for next season. 1t will be inn
possible now to make enough to sup.
ply the demand, and spinners are be-
ginning to realize it.
] Southern farmers are liable to base
their conclusions as to values on the
past, and sell their cotton at $500
bale less than its value. Spinners
will get this difference in addition to
their profit. twenty-five dollars a
bale on 100000 bales makes sum
OF ,O0O,OO0.0O.
We would like to see our planters
get at least a share of this huge sum
of money, and we want the spinners to
get good profits in our country. We
sold cotton last year at $4,000 per bale
less than values, and it made it posi-
Bile for Japan to buy our cotton, manu-
facture it and come in the American
markets and compete with our own
manufacturers in some lines of goods.
We ought to be selling Japan the fin
ished product.
How to get the farmers to see this
is a problem. On July 10th we fore
casted the conditions as serious, and
stated then that you would see some
thing doing all the time in the near
future, our prediction is being fulfilled.
July cotton futures in New York touch
ed is lac today, and October in New
Orleans Is lie, and looks like it is
going higher Spot cotton is bring
ing 15c right along.
There is possibility of October
cotton going very high, as we look for
a squeeze in October option in Septem.
Der. You can expect all sorts of
scare reports being issued in Septem-
her in order to start big selling
movement. But if you will look at the
condition as we give below, you can
see there is hardly chance to sup
ply the demand if cotton moves as it
does in normal years.
We figure the following as being
about the status of condition:
On July 31st, the govern
ment report showed stock
in American mill
II they bought one-third of the re-
mainder of the old cotton, there would
be 100000 bales, to which could be
added, if they bought one-third of the
new cotton ginned to October, 100000 |
bales, making a total of 1,050,O0O
bales from these two sources, or a
grand total, including stock held by
American mills, amounting to 2,6S2,-
456 bales. Take from this the 100000
bales necessary for mill stocks, and
they would have available for spinning
in August and September 2,0S2,456
bales. The export demand will take in
those months about 100000 bales,
and the domestic demand in those
months will take another 100000
bales, or a total of 100000 bales
Therefore the theoretical
shortage will amount to
about (bales) ............ $4,000
Hester's report shows $4,000 bales
into sight to August 25th, which
would have to double next month to
get 1,050,000.
The South gins about one-fifth or
20qo of crop by the 25th of Septem-
Der in normal years, but we are two
weeks late this year. and it will
throw us into october before we get
that amount. Now this crop looks as
if it will be around 11,5O0,0O0 bales.
Twenty per cent. of that will be 1890
coo bales ginned to October LIST.
To get one-third to the mills ready
for spinning by that time is good
movement, as farmers hold some, mer
chants and cotton buyers hold some,
and cotton factors hold some to de-
liver on December and January con-
tracts.
Europe is short on cotton and they
have to buy early in order to get the
actual cotton across the water fir win
ter's trade.