The news scimitar. (Memphis, Tenn.) 1907-1926, 1919-08-01
COTTON MARKETS
SenSationaIIy Low Condition
Report of GIL Followed by
Limit Rise in Prices.
Friday, Afternoon, Aug. 5

All guesses made on what the gov
ernment would estimate condition Of
the cotton on July rs were too low
and the result was that when the fig
ure Of ST. was flashed to the public
there was a hurried scampering OF
shorts to cover and a rush TO buy by
many who had been doing little. Pre-
viously there was a sinking spell,
helped by poor cables and by a fairly
satisfactory weather map, quotations
going slightly lower than they were ear
her In the week, October in New York
touching 8 2 .s6c and the rise started from
that level.
It was fast and furious and did not
require long for the one-day limit 10
be reached. The rise was so rapid and
bullish sentiment so keen that trading
continued on the exchange in New York
above the s5-cent level for October,
which was the limit, but later all such
trades were ordered cancelled and the
official high left at "a .S5c. The high
est one sent out by the wires was at
IS. 20c, 1t being evident that the con-
fusion was SO great hat traders over
looked the fact that the exchange has
a rule on he extent of fluctuations for
one day.
When the market reached its limit
AAAClV a NgllgluNk9 OlN BLblAL AahtAAAs "
the upturn was made with very little
trading, n report estimating that not
more than 10000 bales were traded In
between the low and the high in New
York. The reaction On hurried realiz-
ing carried October back down to S4.05c,
but this quickly brought in buyers and
the rest of the session say offerings
absorbed and the list shortly after 2
D. m. reached its maximum again,
which reflected unwillingness to sell
moro for the day and trading thus
stopped for the time being.
The trade was simply swept off It's
feet by the report and there was some
disposition to accuse the government
statisticians and reporters Of having
overshot the market. However, as II
was the official utterance II naturally
arried weight and was accepted as ina
by the average a In a statement Is
sued by the department ! n connection
with the report was possibly some eN-
PLANTATION for the big difference between
the official report and the average OF
the private ones Part Of It is given
herewith:
1.-THE bureaus estimate OF acreage in
cludes the amount standing on June 70,
and therefore does not include aersaee
planted but abandoned before that date,
Usually very little abandonment &C.
ours after June rs. This year, however,
the adverse conditions affecting the
crop. particularly excessive rains and
boil weevils, have caused material aoan-
donment since, June 26; the amount mas
not been estimated In acres, Out THIS
factor Is taken Into account IN the con-
dition figure"
This apparently is an unusual feature
and may have a bearing on the trace !
attitude after 1t becomes generally
known. The other feature emphasized
in the report was the activity OF .r rs
still favorable in q large part or the
belt for his work. -,.
The LIVERPOOL market this morning
was much below expectations ana was
A factor in the early on Una
side. However, there was some nm
resu's guess and finals were irregular
and unsettled at a net gain OF ~ 70 ~
points Spots were marked down %
points, 1niddlinE to 19.88d, with safes
1000 bales, including 2,4oo American
Receipts for the day were 66,CoO paies.
Poor cables \ preity go1u ths
nressure early which caused the list 70
sag up to the time the report came,
There was ,Nut little support n tne
general tendency Of speculative markets
70 react applied In a large measure ~
cotton. When the turn came tnere war
little else than the report ana its III
Futures closed 100 to 165 points up
| tone called very strong. Prices re-
In New Orleans finals were up ~
To 200 points up, toen steady, Sp2u
were up rs points, middling at S4'zoc'
| and sales were 1895 bales. .ro
In the local market sales were oSu
| bales and quotations were
,oiSdl;ng at 34.5Oc. Weeks sales were
4 775 bales. Estimated unsold stock Is
| 1000 bales, compared with $4,000 last