New-York tribune., 1918-08-24
Cotton Jumps to
Record Prices on
Bad Crop Reports
Violent Rise Follows News
of Adverse Weather in
Southwest


looked like the moving picture concep-
ton of market yesterday, when
prices advanced as much as $l450 a
bale to new high records for the sea-
son. The fluctuations, which varied
from 273 to 290 points at the crest of
the market, were the largest and most
vlolent recorded since February |,
1911, when prices broke near six cents
pound and then recovered five cents.
dangerously close approach to the
MAXIMUM fuctuation of 300 points was
made by the month of October. If that
delivery had gone eleven points higher,
1T would have exceeded the margin be-
OF the exchange, prices cannot move in
single day. In the latter part of the
trading there was a slight recession,
and the fear that the exchange might
have to be closed for the day before
the regular time was relieved
In the morning session the activity
was most intense. There was broad
market, and there seemed to be more
buyers than sellers. The usual babel
ring grew steadily in volume as the
prices for the staple of the South
scared without restraint or hesitation
big upward movement was on. And
while the floor secthed with excite
ment brokers kept making their por-
sonal adjustments to the changes and
had no time to philosophical about
causes and to think very profoundly
about results. Various outstanding
factors kept lifting the leval of prices
irresistibly, and until the days trading
was over few traders agreed in all de-
tails in their diagnosis Of the reasons
for the upturn.
Say Condition is 81
Private reports that the condition of
the nascent cotton crop were bad played
an important part in the movement.
Returns to an important Southern
bureau made the condition only 81,
against 73 in the last monthly govern
ment report. A weekly report of a
Western authority, moreover, said that
crop prospects as a whole were the
led traders to fear that the next gov
crnment report might show the lowest
condition for the period on record In
some quarters the opinion was ex-
pressed that from the cnd-June indica-
tion Of 1926, 900 bales crop prospects
might be reduced to II 500, 900 bales
before the end of the season. Failure
of official weather reports to show ade-
quatc rains in Texas encouraged such
reasoning.
Dovetailcd with such unfavorablc
crop gossip were the advices that an
important Allied victory was mpend-
ing on the Western battlefront Both
factors meant tendency toward high
er price, ard together they almost tore
off the lid. These considerations led
to extremely heavy covering by the
shorts. il was said. Broad buying
from foreign sources also contributed
to the general movement.
Some brokers pointed out that there
has been a steady accumulation in
past weeks of futures by foreign buy
ers, and that when shorts began to
cover they found the offerings com
paratvely small. At the close Of the
market the net advances varied from
263 to 2S2 points.
Prices Steady at Start
Prices opened steady. Reports of
rain in the Southwest were current in
the early trading. and some realizing
was done. Offerings were quickly alb
sorbed, however, and the market be-
came progressively active as the price
levers began to become operative AS
thu shorts began to cover it was said
many Of the spinners who had bought
futures during the last few weeks as
hedge against coming orders sold
This change was interpreted by some
as helpful to the technical position of
the market.
Fair rains were reported in Okla
homa, but the showers in Texas were
lighter and less general than indicated
by the early reports. Southern spot
markets as officially reNo ed were un-
changed to 215 points higher. Export,
for the day were 80 264 bales, making
2l22l6 so far this season, against
257.S92 laet season.
The following weekend statistics
were made public at the exchange:
Into sight for the week, 75.162 bales.
against lo7,444 last year, making 155,-
469 so far this season, against 230, ,653
last year. Spinners' takings of Amerj-
can for the week, 1903 bales.
against 126,S69 last year, making $40,
262 so far this season, against 1926
last year. Worlds visible supply of
all kinds, 2.S92,l59 bales, against g.
1928 last year; visible supply Ameri
can, l7Sl, ,1o9, against ,256,233 last
year.
COmDoricO of nricac folIov..,