The Washington herald., 1921-08-06
HEAVY BUYING In
COTTON CONTRACTS
Prices Gradually Work Up to
Highest Average for
Some Time Past.


a heavy general buying movement
of cotton contracts from the open
ing of the market today. Prices
started about 10 points higher on
the average and gradually worked
UP to between 40 and 43 points by
2:3o o'clock from yesterdays clos
ing quotations. October sold at
1887 on this bulge aginst 1887 for
December. January 13,s2 and next
March deliveries at 14.15. These
are the highest prices reached for
some time past and represent a
rise of so to 40 points from the
high levels reached on the sharp
advance of last Monday after the
publication Of the governme nt's
bullish crop report. There was
heavy speculative buying and also
considerable trade buying on the
opening. Liverpool cables reported
slightly higher markets for both
spots and futures there than had
been expected. but the real factor
was an aggressive movement
against a large stubborn short in
terest here outstanding for the last
several months with the principal
basis against It claims of heavy
crop damage from the spread of the
boil weevil over central and east
ern Texas and in most of Alabama
and Georgia In this connection
there were further undesired rains
in the GItlanticsl and r East Gulf
States with some very heavy pre-
cipitation in some districts there
ranging up to l and inches. On
the other hand. the temperatures
were very high in some sections
with yesterdays maximum reaching
100 to los degrees at two stations
in Texas and 100 to 103 at two
stations in Arkansas and four each
in Louisiana and Mississippi Some
kilograms alleged there was heavy
shedding of the crop from these
conditions in addition to the boil
weevil damage.
The result of the days develop
ments was a crop scare with some
alleging Texas will not produce
more than 1000 bales this year and
the total yield may fall under s.
O00, 900 bales without linters against
the indicated crop Of 100000 bales
in Mondays government crop re-
port. The big short interests above
referred to was caught and forced
to cover on the rising market.
thereby accelerating the advance in
conjunction with the buying and
bidding up of prices by the local
and Wan Street buu element.
1t has been a long time since
trading was Of such a heavy vol
ume as II was today. There was
very heavy profit taking by recent
bulls and many important trade in
terests, but the demand at all times
was sufficiently broad to absorb 1t
and hold the bulk Of the days
sharp advance which was about
s2.00 per bale over the closing
prices OF yesterday.
At Liverpool cotton futures closed
firm at the top. 12 to 10 English
points net advance ION the near
months to 6 and on the distant
deliveries. This was against what
was unchanged to points decline
due to have met our closing prices
of yesterday. Spot cotton there
was in better demand with the
price up 16 points to the present
new high level Of s.i9d for mid
ding. The days spot sales were
but 5000 bales as spinner were dis
inclined to follow the rise. Today's
export clearances of cotton posted
up to $3.50 o'clock were about $4,000
bales The weather bureau pre-
diets further showers and thunder
storms for the Carolinas. Georgia
Alabama and Mississippi tonight
and tomorrow. The forecast for the
western ha'f of the belt Is for only
partly cloudy weather for eastern
Texas. as against problble showers
for Arkansas. Oklahoma and west
Texas.