The Union daily times. [volume] (Union, S.C.) 1918-current, 1920-08-09
THE COTTON SITUATION

New York, Aug. THE fluctua-
tions in future contract prices have
been wide and very erratic owing toI
the prevailing technical market con-
ditions and the gravity and uncer-
mand from that country can now be
developments In Europe. With con-
tinued ideal weather in the South for
cotton picking rapid progress is be-
ing made in harvesting the early crop
and this is being followed by a gem
eral downward revision Of spot prices
In the leading Southern markets, es-
pecially Of high grades of which
there is an abundance in the receipts
coming in from plantations.
There is at the same time only a.
limited demand from consumers who
are still pursuing q waiting policy in
expectation Of striking q lower buy
ing basis later In the season when the
crop moves in greater volume. The
Government Bureau report giving the
condition to July 26, as TAI, proved
to be little below the 10 year aver
age 75.6, but still showed q marked
Improvement over 70.1 last month and
GIL last year.
High money rates continue to re-
strict new buying in all textile lines
of goods and at the same time check
any tendency to increase the produc-
ton Of manufacturers as mill owners
generally are not disposed to stock
up with goods or raw material at the
present time. The deflation movement
is still making progress in all direc-
tions and is now reported as having
spread to the large European cities.
Present credit conditions are decid-
edly against any movement to hold
an hNrrOxlyaI tkn
outlook is for a liberal supply of both
high and low grade cotton in the near
future. The low grades in the United
States were intended for shipment to
Germany, but owing to the unfav-
orable European financial and politi-
cal developments only a limited de-
man from that country can now be
expected. Besides owing to increased
cost of production German spinners
are in no position to compete with
other countries in cotton goods at
present.
The crop is still making satisfac-
tory progress in all the cotton States,
the principal complains being the
spread of weevil and apprehension of
damage from shedding following the
recent rains in parts of the Atlantic
States and in the Southwest. Alto
gether the crop has made wonderful
recovery and steady progress since
prospects are favorable for a large
yield. In some sections Of the trade,
however, fears are entertained that
deterioration during the critical
month of August may yet take place.
Any adverse development however
from the present bright prospects for
the growing crop would change local
sentiment regarding the future course
of the market and encourage specula-
tive and trade buying. Nevertheless
up to this time there have been no
complaints of a serious setback ex-
cept that some sections are having
too much rain. Most of the sharp
rallies of the week are due to the
oversold condition of the market, es-
pecially in the nearby months which
induced free covering.
A striking feature in the trading
has been the tardy manner in which
the distant positions followed the up
ward price movement of the nearer
months. This appears to be due to
the moderate amount of new speci-
lative ventures on the buying side at
present and the genral lack Of trade
demand for future requirements, both
of which would naturally be attracted
to the lowest price positions.
In fact, most of the cotton market
factors and the condition of the man.
ufactured goods trade appear to be
against any extended upward price
movement at the present time, al
though crop developments will con-
tinue to be the dominating influence
in shaping the course of the market
for some time to come.
This does not preclude frequent
wide swings in both directions with
tht chances in favor of sales on the
sharp bulges.
Hapry Claxys r. ~