The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-05-21
COTTON MARKETS
Better Weather and Spread Of
Reaction Idea Help Bears.
New York May Topples.
Friday Afternoon. Nav d

iiNdg AlkeTIlOOn, May Il.
ebars mad more success in the market
To-Day than for some time, although
lney did not retain all of it, The
chlet influence seemed the spread of
tne IDEA that deflation is really under
way and that cotton cannot escape
soaring therein. The fast also that the
weather conditions in the belt are more
favorable contributed to the shakeout,
a spectacular feature was the drop in
May contracts New York from an early
high at 42.75c to 49, SOC, at which price
the option expired. 1t was said that
one reason for the violence of the
break was the notices for delivery of
! about 1000 bales a little while before
the dead line. 1t did not have appre-
ciable effect on the general list, which
was weak for other reasons
=. rlnals were steady and from S5 to
% points net lower, while New Orleans
finished 40 to 80 points to the bad
Another unusual feature in the mar
het locally was the radical revision in
quotations, discounts on the low grades
being reduced as much as 900 points
on ordinary, ranging up to only SO
POINTS on mlddling: while grades above
action created some surprise, although
IL has been known to the trade for sew
eEal days that some of the business be-
ing reported had been done at sharp
discounts under quotations, the cotton
having been practically forced on the
market. The fact that demand here
has been so stagnant and the only buy
ing was In the nature OF picking up
lots on speculation, is given as reason
Why the committee had not reduced
quotations sooner, and even now some
or the factors think the action unwise.
The weather map for the morning
showed the only rains in the Memphis
district and in part of Alabama. Else
rains were absent, giving rise to hope
OF better advices from the fields. There
was fairly good outlook also to help
encourage a little bearish sentiment, al
though it Is recognized that private
condition reports, likely to begin COM
ing any day now, will show low per-
centage.
The trade and industrial situation
was given dominance on both sides of
the water and further asiness in Egyp-
tion cotton was credited with part of
the weakness in Liverpool, absorptiVe
power over there being limited Marked
weakness in stocks and grains in the
domestic markets helped inruce east
ness, which carried prices down sem
sationally for time.
In Liverpool finals were quiet and 20
to points to the bad, instead of 25 up
as due. Spots were marked down 10
points points, o fully muddling to S7;SSd,, with
lean. Manchester cabled that cloths
were dull and inactive and yarns irreg-
ular and weak.
Opening on this side was at a lower
level, with the new months off most
July started rs points off, at 3S50c,
which was high for the day, and at its
lowest the price was 3755c, recovering
to 3S.1Oc and closing few points under
that. October started at 35.25c, went
toSf35. 60c, and then sold off to 34.50c
recovering to 34.95c. Sentiment has
been shaken, but there is still conf
dence among the bulls because of crop
conditions.
In the spot markets business contin-
ued small and quottions were unchanged
TO 80 points off at leading centers, ex-
cept the revision in Memphis. Sales
were 696 bales in New Orleans, SIS in
Houston, 23S in Dallas, sos in Little
Rock and 11S in Augusta. Locally sales
for the day were $50 bales, making $500
for the week. Unsold stock here was
cut to 216,0OO bales, compared with 1872
900 year ago and 1872 900 in 1918. Lint
ers in stock are 10000 bales, against
! $1,000 last year and $4,000 two years
ago.
The weekly statistics were slightly
bearish, but received scant attention.