New-York tribune., 1920-03-24
Cotton Jumps to
Highest Level in
An Excited Market
March Contracts Sell al
AZ. l8 Cents and Spot at
43A Gents as Short In
tcrests Rush TO Cover

The spectacular upward swing Of the
price of March contracts carried the en-
tire list on the New York Cotton Ex-
change, with the exception Of July con
tracts. to the highest level OF the year,
Moreover, the sale of March contracts
at 4s.lsc pound was the highest price
ever brought on the exchange by a
future contract. The spot market, which
was nominal, rose to the highest mark
IN half century, being quoted at
4S.25c pound for middling upland.
The continued squirt of March con-
tracts was caused by short coverings
IN thin market. 1t was estimated
around the ring that not more than
5000 bales of March cotton changed
ownership during the entire day, but
those who were short had to bid ener-
getlcally to bring out even this much.
The first sale of the day was at 42.5oc
and the demand from shorts soon sent
the price up to 43.1Sc, or 14S points
above the closing price of Monday. On
this advance !. fcw hundred bales were
sold by local spot houses, supposedly
against cotton available for delivery in
the local stock, and later the price
eased off to 42.S0c, closing at that. level.
Other months were influenced by the
fresh strength of March contracts, but
their price became easier as soon as
the pressure was lifted from March
contracts. After selling up to 36.31c,
or eS points net higher, July broke
to a5;6cc. or IS points net lower. and
closed at 35.96c. The general market
closed firm at an advance Of 110 points
on March, but 80 points higher to 80
points lower on May and later de-
liveries. New crops were relatively
easy because of the prospects for better
weather. =
Bankers, in commenting on the posi-
Gion of the Southern staple, said that
cotton goods could now be sold any
where in the world without much re-
gard to price, and the Lancashire mill
owners were having an unprecedentedly
prosperous year. Some British pur.
chasers Of cotton have already asked
American banks to sell them future ex-
change against next years needs, but,
n '. W Of the ftUctuatirg state Of the
exch; ge market, bankers are disin-
cline contract too far ahead An
Other actor in the strength Of cotton
has been the unusually heavy buying
from Japan, which is now using more
cotton than ever before. Moreover,
the Japanese heretofore were larger
consumers of Indian cotton, but now
prefer the American product, because
Of its superior quality.
Yesterdays market opened firm at an
advance Of 125 points OF March, and
of S to 20 points on the later months.
The strength of the spot position stim-
ulated covering by May and July
shorts, and there was trade buying to
fix prices. May soon solo up to 1880,
or SO points net higher, while the ad
vance In near posis.ons. carried early
new crop deliveries 20 to 32 points
above Mondays closing figures.
After the reaction away from the
nigh levels of the day, prices again
rallied toward the close on renewed
covering. Southern spot markets as
officially reported were 25 points lower
TO rs points higher, with middling quo
tatlons now ranging from 1850 to
43.45c
The local spot market was steady
and 125 points higher at 43.25c for
middling upland. NO sales were re-
ported.
The ranoa If prjcas f.11ou5.