The news scimitar. (Memphis, Tenn.) 1907-1926, 1920-02-25
COTTON MARKETS
March Shorts Cover Freely
and Entire List Up, Despite
Weakness in Stocks.

Wednesday Afternoon, Feb. %.
That cotton has plenty of strength
in and of itself was indicated today,
when there was firmness and higher
prices in the face OF widespread huui-
dalton in the stock market rejecting
concern about conditions of finance.
Shorts IN the March position seemed to
Rave suddenly become awakened to the
precaflousness of their position and Ii
extended to May and later positions.
The result was d considerable advance.
which reached into the new-crop
months. However, this was largely
confined to the speculative department,
fog adVtces did not tell of much activity
in spots. II seemed more the result
OF the technical position of futures than
to anything else, and was but a repe-
tition OF what has happened in each
month as it has approached maturity.
Naturally there is less tenderable cot
ton now THAI previously and the effect
measured in price changes was greater,
although trading was not so large.
The March position in New York
made new highs going early over the
previous top Of 1890, and in the aft
375Oc, with nobody bold enough to
guess where it must go before all the
shorts have paid the toll for their dar-
ing in selling it. The gossip had 1t
that Liverpool was buying on this side,
while it was also said that that
prominent M ooo speculative. trader had
bought 10000 Mays in New York, fear
ing that position would suffer as has
March. Other wires said that Wall
street traders were helping in the up
turn by absorbing contracts, being en-
couraged to be bullish by the ease with
which the rise has come.
The foreign market was better than
ND oil l., l.
OF the day, steady at net gains of 80
to Al points. Presumably the absence
of any March notices to be circulated
ever here yesterday induced some COW
ering, while cables said that spinners
were calling some cotton also. Spots
we're marked down SO points, fully mid
ding to 3O,87d, with sales 5000 bales
including $500 American. Receipts for
the day were $4,000 bales, including
1900 American.
First prices on this side were steady
and moderately better than the pre-
vious close, but at first there was lit
Tie trading. The weather map showed
absence of precipitation, but it was cold
IN the greater part of the belt, and in
dlcatiCns were for it to continue So
which was not favorable for new crop
preparations. Very sooa, however. COW
ering' was noted and offerings were abb
sorbed readily, the result being a sharp
bulge, May going to 34.97c, after sell
ing as low as 34.25c right after the
opening. The weakness in stocks and
uncertainty in many directions failed
to have much effect. One thing help
ing in the early strength was a report
that action on the peace treaty was
A probable soon, while New Orleans
wired that inquiry for spots was bet
ter and Texas buyers were there for
their needs When the wave of COW
4 ertng subsidized somewhat a moderate
reaction came, May dropping back to
34.65c, but later in the day it sold back
to 34.9Sc, led by strength in March.
81 News was of the same sort coming
20 hand recently, except that the time
for the shorts was lessening and there
6Beemed no hope for them except COW
&ering IN the open market, which means
they are at the mercy of those who
hold the long end of the contracts, be-
heved to be largely trade interests.
Exports are expected to continue large,
while visible changes this week are
probably going to be bullish, as takings
will compare with small figures a wear
#ago. Sterling rates were some better
today, but call money in the afternoon
Preached IL per cent and there seems
expectations of the tightness to last
for some days yet.
Futures, closed 70 to As points up;
tone steady.
New Orleans closed 70 to 81 points
up; tone steady.
Spots were rs points up; middling at
40c, with sales 3,1S3 bales.
Liverpool is due 10 come 10 to 70
points up.
in the local market Sales were 2.4OO
bales, and quotations were unchanged:
middling at 39c