The Washington herald., 1921-06-22
COTTON ENJOYS
NATURAL RALLY
Crop Makes Recovery From
Previous Low, Which Gre
ated New Record.

NEW YORK, June 21.-The cotton
market had a natural rally in to-
days trading from yesterdays
sharp break, which had carried
prices OF to MAXIMUM of 20 to
so points to the lowest levels reach
ed since the spring of 1915, thereby
SURPRISING the seasons lowest rec
ords of March = of this year. The
liouidation of stale bull accounts
by local trade,Wall Street and West
ern commission houses was so heavy
yesterday there was not much long
cotton left among them after, the
close to be liquidated today. This
absence of further important SELL
ing pressure from the opening, In
connection with a moderate rally
in futures at Liverpool, and the
better tone the stock market dis
played turned cotton prices up here
for the general contract list di-
rectIy after the opening of the mar
ket. 81 g.
Starting about. where they had
left off at yesterdays closing, there
was a gradual-advance of 80 points
from July to next Saturday deliv-
cries by the end of the noon hour.
This brought July contracts up to
IL cents, October of the new crop
11.S4. December 1874. and January
to about 12.45. There was a good
deal of covering of shorts on this
rally, which. together with some
new buying by trade interests and
local cotton commission houses.
carried the market up without the
development of much fresh selling
pressure until this good recovery
had been established. Then enough
new Southern selling and local
profit-taking came in to check the
rally and cause a subsequent reac-
tion in the later trading of about
is points from the top.
There were no particular features
in the general situation. Liver
POOLS rally was simply due to the
development of a little better trace
demand there for spot cotton and
some covering of shorts. Futures
there ended quiet and steady at S
to z English points net advance
on the day. after having opened
with a decline Of to 8 points. or
Just about what had been due then
to have equaled our closing
prices of yesterday. Spot cot
ton in that market declined 10 points
to the new low level of 6.s5d for
middling since early last March.
with this lower price developing
enough new buying from trade in
terests to increase the days spu,
sales to 5000 sales, as against the
a of aA laI
past several weeks. Liverpool
houses did very little trading in this
market. There was nothing new
on the British coal miners strike
situation to indicate its early end
The export clearances of cotton
for the day. as posted up to 2:30
p. M. are 1884 bales. Some of
the Southern spot markets recov>
cred about 20 to 80 points of their
sharp declines of yesterday, when
had averaged between so and so
points and which had brought near
1y every Southern spot market down
to new low records for middling
cotton since early in 1915.
At Dallas middling cotton closed
yesterday at 9k cents. against sh
at Montgomery and Mobile; Savan-
nah, s&; Little Rock Houston and
Norfolk. 10 cents; Galveston, 1889;
New Orleans, 10%. and Wilmington
about 10 cents. as against 1os5
cents for middling cotton on tho
New York market The contract
stock here Is now about 124,0o0
bales. with the total warehouse
stock up to $4,000 bales. against
less than 21,0s0 at this time last
year. The present stock of cot
ton here is the largest at any time
since 1915. Weather conditions in
the cotton belt continue mostly ia
vorable for the rapid progress and
nrnnar deNelnnrnert ~