Durant weekly news. (Durant, Choctaw Nation, Indian Territory [Okla.]) 190?-1944, 1916-09-15
THE DECLINE OF
COTTON PRICES
Ascribed TO Heavy HedgerselIine
Against Spots, Coupled with Gin
ners' Reports Showing Heavier
Ginnings Than Last Year.

week in the cotton market was ons
OF reaction and liquidation, and The
prices have declined about 15O points
from the high level reached shortly
after the publication of the Govern.
ment report. from which there was a
moderate recovery. After the rapid
and almost continuous advance
throughout the month of August. a
substantial reaction was to be ex.
pected
The downward movement was in
augurated as result Of Southern
hedge-selling against spots, very
heavy movement, and exceedingly
heavy ginnings during the period
(S5O,000 bales). All Of this created
a fear among speculative holders that
the South would sell freely at the ad-
vance and brought about liquidation
OF many accounts. The impression al
so gained grOun dthat many large in
terests that had not been identified
with the recent advance we're not ad-
verse to some reaction at this time.
which doubtless, would improve the
technical position and furnish a bet
ter basis for an advance later on. AT
the decline, the market displayed n
remarkably steady undertone. a re-
newed demand developed, and II
looked as though cotton would be
we'll taken at concessions.
Both the contract and spot mar
kets were subjected for the first time
this season to the test of marketing
the new crop. 1t was but natural
that high levels touched last week
should prove very tempting to the
growers AS consequence, they
have used every effort to quickly ga
ther, gin and market their cotton. 4.
and adyices to us from Texas Indicate
that the heavy ginnings for the per-
lOd may be accounted for by the IN
precedented weather and high prices.
1t is further stated that many far
mers have picked more than one
half of their cotton.
Free selling of contracts as he'd
ges against spots, as protection
against cotton that was not yet ready
for shipment, was a feature of the
week, and under the increased offer
ings of future sand spots. it is not at
all surprising that the sharp reaction
occurred. The decline was also help
ed along by improved crop reports
from all parts of Texas and Oklaho-
ma, whic indicated that some i'm
provement had taken place since the
belated rains had occurred and il
was also said that the condition of
the crop in the Carolinas and Geor-
gla was rather more favorable.
Operators at the present time
seem anxious to observe the market
ing policy that will be pursued by
holders before attempting to force
values higher again. While il was
but natural TO expect free marketing
of cotton at recent levels it is not
thought likely that holders will con
tinue to press sales should the de-
cline go much further II woulI.
therefore, not seem prudent to count
too much on their forcing sales, as
farmers are now in mucn better fl
nancial condition thar ever before
money is cheap and plentiful. land
the fact that they have only raised
moderate crop will we believe. in
duce a gradual marketing unless the
prices are entirely to their hF'ug.
The State presidents of III, Far
mers' Unions in session here last
week. went on record as advocating
Il minimum selling price of Is cents
per pound and further said that ex-
listing conditions warranted much
higher prices, even 20 cents per
pound.
The American consumption con-
tinues o nabout the same basis as
last year, and exports up to this time
are double what they were a year
ago
Cotton goods continue strong with
vigorous demand, with osme goods
te record prices. Mills, in some cas-
es have withdrawn their goods from
the market, owing TO the advance in
raw cotton.
AAN ~ DopNNN lOl lllH lNuldH NIOU
Is now said not to be nearly as good
as earlier promised and a recent re.
port predicts a yield of $500, 200
Cantar, as against the earlier prom
lse of 100000 Cantar.
The settlement of the railroad
strike wa sregarded as Favorable
development in the cotton market.
but the possibility OF the BRITISH
government closing the Liverpool
Cotton Exchange 10 protect finances.
IL it should materialize, would likely
exert a temporary beavish movebent
and influence, by requiring the Am
eTican markets to absorb considera-
bic hedging that would naturally go
TO that market. and thus RESTRICTING
operations.
Although the great majority OF
the trade seemed to regard the reac-
tion last week as entirely normal thu
belief seems general that mucA high
eT prices are likely 10 be seen when