The Washington herald., 1921-08-11
STRONG MARKET
SINKS VERY FAST
Cotton Enjoys Early Rally,
But Outburst of Selling
Brings New Losses.

NEW YORK, Aug. l0.-There was
ton contracts on the opening due
to Lverpoors good advance fol-
lowing a sharp rally of late yes
.terdsy and the circulation of fur
ther bad crop reports. The latter
were of a general character and
frightened many local shorts into
covering in connection with Liver
POOLS rise. The market started .
to 10 points higher and advanced
10 about 90 points over yesterdays
closing before the end OF the first
hour. This brought October con-
tracts up TO about l2i2 cents. De-
cember and January to 13s and
March TO 1i2 AS on former oc-
casions when the market reached
the basis of II cents for December
there was. however. SO much fresh
Southern selling Of a hedging char
scetr and profit taking by local,
Wall Street and trade bulls. the
demand at that level was so rap
idly filled up many local treders
again switched TO the selling side.
This caused the market TO slump
daring midday until all the early
advance was lost. Then consider
able reseliinG by early buyers
caused a further decline Of 10 to
Is points from yesterdays closing
quotations. A good deal OF the
latter was influenced by the re-
newed weakness in the general
stock market bringing in consider
able further liquidation for Wall
Street accounts, and also by the
disappointing manner in which the
Chicago grain markets responded
to the very bullish government
crop reports of yesterday, particu-
larry on wheat and oats.
In this decline October contracts
went back to near the basis of 1917
cents again, while December and
to about 13% cents. There was a
good deal of Southern selling dur
ing most of the day. This came
Memphis. 1t somewhat nullifie5
the bullish influence of the bad
crop reports. In this connection
rumor was circulated early in
the day the National Ginners' As
sociation had put out a crop re-
port making the condition as low
as 59.4 per cent against 64.7. ,he
condition stated for July 25 in the
last government crop report issued
on August 1. This, however. was
later on denied. Japanese inter
ests who had been good buying Of
cotton contracts during the weak
periods last month were good SELL
ers on the early advance evidently
taking profits. Liverpool houses
bought the near months but sold
the distant deliveries. After the
break che principal buying sup
port came from profit taking by
shorts and some further scattered
buying on the scale down by some
of the trade houses and bullish lc-
cal commission houses.
At Liverpool cotton futures
closed steady at IS points net ad-
vance for October and 9 to IL for
the later months over their final
quotations Of yesterday against the
opening advance of 10 to Is points
and the rise of to IL which had
been due from that market to have
met our closing advance OF yester-
day. y Spot cotton there was ad-
vanced . oints early in the day TO
s.53d for middling with the spot
sales going up TO 5000 bales for
the day. As private cables said
the advance there had been SYM
pathetic with our rise of yester-
day and bad crop reports from this
this side, il was assumed the Liv-
side 1t was assumed the Liver
pool markets would react tonor-
row in sympathy with our setback
Dec. Jan. Mar. May July
Open 1850 l3.S3 lass 1910 l4.1S
High .....13.4s la.s4 1895 1870 1875