Imperial Valley press., 1921-11-19
COTTON GETS
NEW / | ii
LEVEL 0 n
REPORT
Prices Recover Rapidly on
Issuing of Federal State
ment on Crop Condition
and Consumption by Mills

Cotton prices. which declined
heavily following the government re-
port of cotton ginned issued Nov. g.,
are rapidly and steadily recovering
from the resultant slump. The
trade is still optimistic and spot Of
ferings are meager, the growers pre-
ferring to hold for increased prices,
and seem quite able to postpone sell
ing.
In signed statement, issued by the
bokerage firm of Raymond Palmar
& Co., New York, the cotton grower
is urged to no undue haste in market
ing, in the following words:
"The governments crop estimate
on October l, of 6,500,000 bales was a
miscalculation. 1t led to worldwide
trade and speculative buying. Crop
revisions are now in order. Seven
million five hundred thousand bales
might be regarded as ample for the
worlds need in the present depressed
condition of trade. Chicago commod-
ity prices have all been materially
lowered. 1t is reasoned that cotton
will have to undergo a similar revi-
sion. This argument might be con-
Sidered logical if it were certain that
no trade revival were possible. How,
ever, the most intelligent minds in
America are very confident that we
are on the eve of gradual but far
reaching business recovery. Strength
and activity in the stock market
seems to encourage interests arrayed
on the constructive end of business.
We believe that cotton future prices
may suffer further depression as
result of speculative short selling, but
we are confident that purchases of
May, July and October, if made on
breaks and properly margined, will
ultimately show large profits. The
cotton world will be vitally interested
in the outlook for next years crop. 1t
is certain to make provision against
the possibility of another short yield.
This will create a steady demand for
spots throughout the balance of this
year and probably we'll into next
spring. Spot holders are not sacrific-
ing their holdings. They will be able
to accomplish gradual liquidation Of
their cotton at satisfactory prices"
Commenting upon the situation, fol-
lowing the cotton price decline, re-
sulting from publication of a ginning
report of 6,646,000 as of Nov /, Com.
merce and Finance of New York has
the following:
Looking ahead, we can see no
reason for diminished confidence in
the ultimate value of cotton. The
crop may be nearer 1-2 to s mil
lion bales than 6 1-2 million. but it is
doubtful whether conservative people
have ever thought otherwise, and in
such quarters bullish views of the
market have been based upon the
prospects for a gradual reduction in
the old crop surplus and a slowly in
creasing distribution, combined with
the uncertainty Of future crops, rath
er than upon any expectation Of actual
scarcity for this season, at any rate.
Since the buying movement of last
summer and the earlier autumn, trade
demand has been disappointingly
slow and speculative holders in the
futures markets have become discour-
aged, but while there is some cotton
for sale around present quotations
and probably increased quantities or
advances, spot holders have shown nc
lack either of strength or patience
On the contrary, the absence of great
cr pressure of spot offerings during
the past two or three weeks-wher
speculative markets have been so un
settled and available supplies of un
sold cotton in the South nearly tht
maximum of the season--would ap
pear to have afforded quite an i'm
pressive test of stability in that direc
ton. Just how much more cotton ma.
be for sale below the 20 cent level is
question, and it's absorption unde