The New York herald., 1921-10-04
COTTON RECEIVERS
AFTER RAPID DROP
Market Makes Early Advances,
Falls Back on Report and
Then Rallies.

The cotton market closed yester-
day 25 to SO points net higher on active
positions after experiencing what was
this year. Interest ran high at all
times. but particularly so just before
the release of the Department of Agri-
cultures report Of the condition Of the
of the first hours trading. Prior to that
report the bull element had things all
It's own way and advanced prices 100
to $50 points from Saturdays final bids.
Support was virtually general In the first
hour and near months rose to new highs
for the season; December up to 21.95.
The descent was far more rapid than
was the advance. The release Of re-
port showing condition Of 42.2 per
cent of normal was the signal for the
heaviest unloading of long contracts in
considerable time. Prices broke 10. 25
and so points at time. Five minutes
after the report appeared December con-
tracts were selling at 20 cents, or nearly
$40 bale down from the high recorded
just before the release of the report.
The condition report was at least 30
per cent. higher than generally had been
expected. All private estimates had
pointed to a deterioration for the month
OF 10 per cent. or more. Last month
the condition Of the crop was 1913 per
cent, year ago on September 25 1t
was 59.1, and two years ago it was 54.4
per cent. The condition Of 42.2 per cent.
forecasts yield Of 11S pounds an acre
and total production of 6.537.000 bales.
Scant attention was given to other
factors. The Census Bureau showed
ginning returns Of 2.907.950 bales prior
to September rs, against 2.249,606 bales
to that date in 1920 and 1.s35.214 bales
to September rs, 1919. This latest
showing was very much as expected and
had no effect on the market. The
weather situation was bullish. 1t was
unsettled and showery over all of the
Eastern Belt and temperatures were
lower in the West. Official forecasts for
to-day mentioned frost for the Western
Belt
After the break to 90 cents for De-
cember, or So points less than Satur-
days final bid, the market had its
third swing of the day. 1t was caused
by spot houses, which, as they saw
futures falling below the spot basis.
came in as fairly active buyers. Prices
rose 26 to 95 points from the days low
to level Of 25 to SO points gain from
the preceding closing, at which the mar
ket ruled at the final gong.
Among the late features of yester-
days trading was the comparatively
light amount Of Southern hedge selling.
Bulls stated that it reflected the attitude
Of the farmer on account of the condi-
ton report, which, after all, was the
lowest on record and promised the
smallest outturn in thirty years.
Liverpool, as did the South, sold
little. The English market was better
than expected at its opening. to 10
penny points better at the time OF the
local call and 10 to 20 lower at its close.
Continued activity in the spot market
abroad was again shown in the $4,000
bales that changed hands.
Contributing to the last hours re-
covery was the steady flow of cotton
abroad. Yesterdays export clearances
totalled 54,14S bales. bringing the sea-
sons total to date to 940.963 bales
against 502902 bales in the correspond
ing time OF last season.
Spot markets were very little changed
Yesterday. Locally spot cotton was ur
25 points to 21.35 cents a pound. Ir
New Orleans tho market held steady al
20h cents. The price of middling ir
Liverpool was 81 English points higher
at 1903.
I~aaf