The news scimitar. (Memphis, Tenn.) 1907-1926, 1919-09-16
COTTON MARKETS
Wave of Short Covering Sends
Market Up More Than So
Bale From Lowest.

uGoudg AlkNIlDOus sept To-
Covering by shorts and some little
buying by trade interests supplied the
strength in the cotton market today
which sent prices up over SIS the bale
from the previous closing level. There
was additional information regarding
the damage from the storm in Texas
and more indication of spot strength,
while the loss of a vessel with 22,OG0
bales of cotton en- route to Germany
perhaps helped a little. The fact tina
the technical condition of the affair
vas ripe for recovery also contributed
some TO the ease with which prices
worked higher. Sentiment has been
entirely too unanimous for speculative
safety. and as usual the decline had
been ~oVerdone. At the top levels prices
stood more than $40 the bale above the
recent bottom, when December touched
2S.1l in New York.
Above 80 cents for December, how
ever, buying power subsidized some
what and there was a little more dis
position TO sell, but this was not pro-
nounced enough to bring about much
reaction.
Liverpool came better than due. and
finished the SAME way. Private cables
said there was concern owe the effect
Of the storm and rain in Texas. for
out there is where the foreigner gets
a large part of his early cotton, and
the reports telling Of damage naturally
caused him concern Finals in the
foreign market were steady at net
marked off G points, middling to 1854,
with sales 5000 bales, including $500
American. Receipts were $500 bales,
all American. Manchester advised that
cloths were in good inquiry, while
yarns were in good demand.
There was not much change in prices
at the opening on this side, but the
tone was steady n offerings were
limited. There were plenty of reports
from Texas of the effects of the storm
and this seemed to inspire covering by
shorts. Gables improved and there
were advices of better feeling in spots
in this country, while trade reports
were indicative of more activity in
finished goods. The rise met but little
resistance, although a reaction came
after December in New York reached
as high as 29,S9. However, advices told
of spots being up a full cent In Au-
gusta, Ga, while New Orleans reported
them fully half "a cent up n fairly
good demand. The effect of the loss
Of % 900 bales on the ship. and perhaps
several thousand bales at points along
the Texas coast, was to cause some
covering, while the entire belt was
quick to take advantage of 1t. A pri-
vate condition report was out at 54.6,
and 1t was said to indicate the crop
was less than 10000, 900. which also en-
couraged some covering.
In the afternoon December sold as
high as ,30.42, having been as low as
1929 in the forenoon. Some profits
were accepted at the higher level, but
the market kept steady throughout, as
there were many shorts still unpro-
tected and the weekly summary tomor-
row is expected to have some bullish
features therein,
The fact that foreign exchange was
weaker than usual today apparently
failed to get much attention, although
it was not overlooked by traders as
worthy of consideration. German marks
and French francs reached their low
est levels during the day, while ster-
ling was quoted within a fraction OF
the lowest record, made some weeks
ago.
tone firm,
New Orleans closed 1913 to 1876 points
higher, tone steady. Spots were 10
points up, middling at 29.75c, and sales
were zoos bales.
Liverpool is due to come AZ points
higher.
In the local market sales reported
we're 100 bales, while quotations were
unchanged, middling at 10000.