Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1921-11-29
SITUATION IN SPOT
COTTON HARDENS As
VALUES TAKE DROP
BY ESTES DOREMUS

The perpendicular rise Of more
than $40 per bale in the price of
cotton through last Wednesday met
the usual liquidation of long COM
mitments after the Thanksgiving
holiday, and with the technical posi-
ton favoring a drop, bears made the
most of one of their isolated oppOr-
tunities by a general selling move
ment which carried values down
from so to 80 points below the crest.
The close of New York futures
Saturday found the market still un-
settled in contemplation of a lower
Liverpool Monday, and prices were
off from 25 to 81 points below the
last Friday. The decline had the
usual tendency to harden the already
strong spot situation, which was
such a potent factor in the advance,
and offerings grew lighter as prices
sought lower levels.
Atlanta spots made new high
for the month at 1880, but reflected
the decline with a 60-point break to
1890 Saturday. which was far from
the general recession in futures. The
same was largely true in other spot
centers, where the situation hard
ened as values dropped below the
18-cent level.
Traders in Dark
Futures were comparatively quiet
during the short Saturday session
and business was largely confined to
the evening-up of commitments for
the weekend. The market was quiet
towards the close and exceedingly
sensitive to even small orders, either
long or short, which would indicate
it's technical position is not fixed in
either direction, but rather for prices
to Jump with the cat
This unsettled condition of the
market has left traders more or less
in the dark and few operators. are
willing to hazard a guess as to the
immediate movement of values.
though the vast majority are agreed
that cotton is a buy" on any
further breaks. Some look for low
err prices while others are inclined
to the belief that the recession has
about run it's course and that for
long pull the long side is the mon
ey side.
Goods Demand Off
1t is pointed out that the recent
break was to be expected in the
so many days, and many of those
who had ridden the market up from
the old low levels had protected
themselves with stop-loss orders aft
er amassing considerable paper prof
it's. Where these stop-loss orders
were reached accounts were closed
out with good profits to holders OF
long commitments.
In justification of the drop, atten.
ton is called to reports that the do
nestle goods trade indicated no i'm
provement in demand, sales of print
cloths to Fall River being estimated
at only $4,000 pieces, and the amount
of cotton on ships awaiting clear
ance was placed at only 148,000
against 239, 900 last year. Few De.
cember notices have appeared so far
The armament conference still is
a factor, and a considerable, one, as
affects cotton values, and any op
timistic turn is certain to senC
prices skyward again. In the event
of real constructive good coming out
of the meeting in the end, there is
no telling where prices would stop
Even aside from this potential 1nflu
ence, traders are expecting the 20
cent mark to be passed before the
end of the season, and those who are
looking for cheap cotton are few an6
far between