New-York tribune., 1920-07-14
July Cotton Sells
AT New High Mark;
New Crop Strong
October Quotations Expect
ed to Climb With Cessa-
ton of Trading in Present
Month; Market Is Dull

A dull session in the cotton market
yesterday was relieved somewhat by
pronounced strength in the July po-
sition, which sold up to 40.4o. repre-
sSn aer NEW ontSa hg Sa eyai TOT n the
were sustained fairly we'll by the July
strength and closed steady. with new
crops generally unchanged to points
net higher. July closed IS points net
higher
From the low level of last week July
cotton has advanced It's points, while
October has risen 112 points and later
months so to 20 points. Even at yes
terday's high level, however, the July
contract was considerably under the
high record established by May. which
chiefly explained by local covering,
trade calling and buying credited to
Japanese account.
Many traders expect the October po-
sltion to take the place Of July, when
trading In the current month ceases
week from next Friday, on the ground
that the spot price cannot be expected
to have a perpendicular drop of cents
q. pound to meet the present October
discount. 1t it understood that good
many hedges evist in October, and the
dlcted that October will vet sell 600
points over March, and that December
WILL also reach high premium over
the more distant months.
Outside of the interest in the near
month situation there was little fea-
ture to the market all day, news being
OF character to discourage outside
business either way. The weather
continues generally favorable over the
belt, but bulls pointed out the possi-
blllty Of showers in the Southwest as
a result OF low barometrical conditions
IN that quarter, which would be dis
tinctly unfavorable in view of the boil
weevll complaints now coming in from
Texas.
Private advices say the crop there
needs dry, hot weather more than any,
thing else at this time. Some of the
reports arriving from New Orleans dur
ing the day said Texas advices had be-
come quite serious. This sort of news
prevented any aggressive selling in the
local market. such as the unfavorable
side. conditions generally might have
inspired otherwise.
The opinion was expressed by those
IN touch with the situation around
Memphis, that the new crop would be
marketed as fast as possible, as the
banks are in no position to do it, and
merchants and factors have their hands
full with the carry-over. The same
people pointed out that there are
abundant possibilities far ahead for a
market full Of activity. Around Cuero
Tex, only about 25 per cent of the
cotton has really begun to fruit yet
though allsis now forming squares, &C.
cording to private reports reaching the
market yesterday, which added that
the crying need is for hot. dry weathe,
continually. No movement is looked
for in that section before the middle
OF August, and then it is expected to be
limited. Already there is a good for
eign demand for early fall shipment
cotton which is being expressed in tn.
relative steadiness Of October over the
later months.
Spot markets in the South were gen
orally unchanged and quiet
The local market for spot cotton wa
steady and so points higher, at Al cent
for mfddling; no sales were reported.
The range Of nricos fo1lors