New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-07-23
Sensational Break
In Cotton Follows
New High Record
July Sells Close to A
Cents in Rapid Climb;
Bottom Then Drops Out
of Market in Half Hour

There was little indication in the
quiet opening of the cotton market
yesterday, with first prices only two
points lower TO ten higher, of the SEN
satlonal features which were later to
arouse the entire trade as it has not
been stirred before in many weeks
The first excitement was precipitated
by July contracts, which, starting at
42.9o, gradually crept up on bidding
by belated shorts to 1915, which is
the highest price ever reached by con-
tracts IN the speculative markets ana
exceeded by fifty-seven points the pre-
vlous nigh record made on March 23
last.
Meantime the new crop positions
moved ependently, showing mod
crate early steadiness, with prices at
one time about two points net higher
on local covering and Wall Street and
Liverpool buying, based on further
heavy rains in parts of the belt and
predictions for showers tonight and
tomorrow in Eastern sections.
The market gave no indication at
midday Of the weakness which in the
last half hour caused a smash that
has not been duplicated here in many
weeks. Practically all of the decline
came IN the last half hour, when an
accumulation of long accounts and
bear pressure simply crumpled the
market up and prices broke upward
OF $3.50 bale under the previous
nights close within a comparatively
short peAiod.
The decline carried October as low
as 1920; December, 31.50, and Jan
uary to 30.75, the entire market show
ing 125 to $50 points net loss, with the
exception Of July, which maintained
nearly all Of its earlier advance and
closed 100 points net higher.
The main influence connected with
the late smash in prices was rumor
that The National Ginner's' condition
figure was bearish and that a number
Of Fall River mills would close for
the balance of the week. Earlier il.
the day reports of an economic and
what paved the way for the break
which occurred in the last half hour.
as the trade was apprehensive of a
repetition in China of the recent de-
moraliZation in Japan.
For some time past outside condi-
tions have not been considered favor
able to the bull side, and the market
has been sustained by weather and
crop reports against the judgment of
people who we're basing their views of
market values on the disquieting mill
news, exchange situation and cotton
goods outlook.
The persistent wet weather through
out the central and eastern belts has
given rise to a good many boil weevil
stories, which have created much bull
ish sentiment in local circles, and
been partly responsible for the long
interest, a good part of which was
thrown on the market in the last
hour yesterday. One report from
Blackville, S. c., said the boil weevils
were in every field and that continued
rain meant crop disaster.
1t is generally agreed that what
the crop needs most now is a spell of
warm, dry weather. Southern spot
markets were generally unchanged
with the exception of the Southwest,
which declined from so TO l45 points.
The local market for spot cotton
was seventyfve points higher at
43.75. No sales were reported
The range Of pricea follows: