New-York tribune., 1920-07-29
October Contracts
In Cotton Lower;
Far Months Higher
Improvement in Crop and
Expected Bearish Govern
ment Report Cause Sell
ing of Early Deliveries

In contrast to its recent leading
strength, the October contract was
relatively weak yesterday and at one
time showed net loss of 35 points,
whereas later months, were mostly
higher, the market closing firm at 10
points net decline to 65 points advance.
The feature Of the October weakness
was the selling by prominent interests
who had been accumulating large
amounts Of October on the idea that
it would follow the example of March,
May and July in attaining steadily in
creasing premiums over the later
months. Yesterdays events strength
ened the opinion that the buying on
this theory had been overdone, the
unexpected Improvement in crop con-
ditions during the month, pointing to
bearish government report Monday,
cotton in the Southwest upsetting what
had promised to be profitable strad-
die.
With the selling of October there
was corresponding buying of the far
months, chiefly March and May, as
these two positions showed the most
strength during the day. Outside of
this feature the market had an IL
regular movement, with frequent and
sharp fluctuations both ways. The
weekly crop report at noon occasioned
a spell OF weakness, as it was generally
regarded as favorable, although not
SO brilliant as expected by the most
extreme bears: Selling by Wall Street
and Western houses continued at in
tervals, as these interests are i'm
which were regarded yesterday as not
sufficiently improved to justify bull
ish operations in either cotton or cof-
fee.
Much the same dissatisfaction pre-
vailed with regard to the situation in
cotton goods, while latest Eastern mill
advices said cloth distribution was
still slow and the outlook serious.
Ihus manufacturers are unwilling to
buy cotton until they see either an
improvement in demand for goods or
stability in the price of raw material.
A bearish factor now, this situation,
however, will ultimately prove bullish,
as mill stocks must necessarily be re-
duced to a minimum.
Numerous crop advices reaching the
maj hCC IOlil IeNdS were mostly faNOr
able, showing increased activity on the
part of gins. The weather has favored
picking and the reduction of the boil
weevil menace, while the condition of
the market, with banks less willing to
loan on cotton and the new crop ABOUT
to accumulate, has led to increased
offerings and hedge pressure.
Texas man here on visit SAYS
that Texas really has three crops of
cotton this year. The first, represent
ing about 25 per cent of the total, was
planted early and escaped bad weather.
The second, about SO per cent? is two
to three weeks late, while the balance,
not being planted until after June /,
is very late. big Texas spot house
issued condition figure Of 755, COM
pared with Ill last month, and a
ten-year government average of 1856,
and it is expected that other private
estimates, to be issued this week, will
be somewhere around this figure.
Southern spot markets were unchanged d
to 20 points net lower.
The local market for spot cotton
was quiet and unchanged at 40c for
middling upland; no sales were re-
ported.
The range of prices follows.