Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1922-05-30
1922 COTTON CROP
IS LIKELY To FALL
SHORT Of DEMAND
Atlanta Spots 20,65 Cents,
4,50 a Bale Over a Week
Ago and S45 a Bale Above
Same Day Year Ago
BY ESTES DOREMUS

Adverse weather cor it / ons
throughout May and the appear
ance of the boil weevil in many sec
tions of the belt have convinced the
world that another short cotton crop
is in prospect-a crop about the size
Of that of last season, plus a carry
over of something like a third OF
that of 1921.
Such a condition leaves TO doubt
as to the reason back of the recent
bull movement and the consistent
upward trend of values even after
the May position was out OF the
way The talk of a crop of around
S,50O,OOO bales when a crop OF To-
100000 would be short enough to
support present prices, is pred1cten
on an estimated end-May condition
of 68 per cent and an acreage of 49,
100000. Even should the bureau
figures come in Friday around 10
per cent, there would be no reason
for alarm among longs, experts are
agreed.
The advance in the price of cot
ton during the last week has been
as consistent, though probably not
as sharp. as that of some prior
weeks. Atlanta spot cotton is up
$3.50 a bale as compared to. Satur-
ago, and the gain over the same
dav a week ago, and the gain over
the same day last year is around $40
a bale. The 20-cent level was reach
ed here Monday for the first time
this wear, and gains in New York flu
lures Friday and Saturday were re-
Elected here in an advance OF DO
points, SO points Friday and 10
points the following day. The last
quotation of 20.65s is the high point
for 1922.
July Option Strong
Up to the passing out of the May
option, there was general uncer'
tainty as to what values would DO
when final tenders were made ana
there was considerable hesitancy on
the part of longs in taking on fur
Their commitments. Advice all along
the line was to await the end of
May and then jump on the band
wagon and the band wagon turn
ed out to be the one bulls have
been overcrowding since late March.
New York absorbed $4,000 notices
on the last day, the total for the
month being in the neighborhood Of
$4,000.
July then took up where May
left off by leading the entire list
in advances and before the week
was out had scored a new high for
the movement at 21.09 Saturday.
closing at 81 cents. While new crop
months followed the advance, only
October went to a new high. 2O.73.
December was seven points under
it's high of 2060 made Tuesday a
week ago. Just as May contracts
were locked up" it now appears
that the same thing has happened
to July or that there is a squeeze"
in the making. At all events it APP
pears certain that July will far
outstrip it's nearest rival before the
last notice day.
Better trade conditions, coupled
with the disastrous effect of rains
and floods on the growing plant
and the menace of the boil weevil,
to say nothing of a bullish senti-
ment that will not be denied, point
to ultimate advances that will
eclipse those of last year follow
ing the end-September condition fig.
ures.
Supply Below Demand
There is no one, however, not even
the most ardent bull, who believes
the advance will be without its re.
actions.
Taking the situation by and large
there is every indication that there
is not going to be enough cotton to
supply the demand. This very con-
tingency was warned against last
season by far-seeing cotton men,
many of whom declared at the time
that the 1922, and not the 1921 yield
was the cruX of the matter as re-
CARDS values, some even suggesting
the possibility of a cotton famine.
The famine is not here yet and it
may not come for another year, but
undeniably it is we'll on the way un-
less a means is found, not only to
combat the boil WeeVil, but eXtermi-
nate it. The pest is certain to do
great damage again this summer and
reduce the potential yield just as
adverse weather conditions already
have cut the crop and made possible
prices promising a fair return to the
farmer, provided the weevil does not