The Birmingham age-herald., 1923-12-05
Cotton Letters
| SHANNON & co.

NEW YORK, Dec. 4.-It has been ail 'orts of a market today but as soon as he heavy early selling was absorbed by demand from the trade fixing prices ana shorts covering with fsold-out longs re- placing liness the market steadied and showed an excellept tone. There was nothing special in the news to account Tor the selling but the impression has arisen that the crop is larger than the recent low estimates and longs have shown strong disposition to secure profits as near as possible to tho top of the. protracted advance which has taken place so far. This disposition was much increased by the sensational break In Liverpool where apparently everyone tried to sell at once. Early rallies met selling by belated longs who carried their cotton through the first part of the reaction but more anxious to let 20 after a glimpse at cables. In mar ket of this sort the reaction IS merely a fluctuation and the fundamentsi in the seem no less strong than oetore and if anything the situation as whole has gained strength through the extensive Liouidat tion of speculative long accounts. There is still mass of price fixing to be done and willing IS the producer may pc 10 accept current prices he can sell only as much as he has, The ginning may trerne low estimates, but must of the most recent ginning would not be suitable for any. real textile purpose and a few hun dred thousand bales more in the crop will. not relieve conditions materially Breaks like the present afford good op- to buy, of which advantage
 H. < B. BEER
 NEW ORLEANS, La, Dec. 4.-The en- test of tessv sas Snt the slaught in a remarkable manner, recov- ering sharply during the last half hour
 Tn early morning Liverpool was on the border of demoralization being as much as 130 penny points down at one time finally closing about 50 penny points lower
 Private cables attributed the weakness a broad to heavy continental selling in fluenced by bearisha ginning and crop
 American markets failed to make full response to the decline in the English the day on the reported denial of the National Ginners association as regarding rumors of having issued ginning or crop
 The fact, however. that London and the is more disposed to liquidate at
 prizes thaa to s,ss sn5sr into fo the belief that the market Is high enough for the present.
 blazed the way to higher prices. coming better than expected almost every day and now that Europeans are disposed to Hquidate, Liverpool, in the near future. may be deprived of the necessary sup port to maintain the market at it's pres ent level of values.
 Ginnings to December 1 to be reported by the census bureau next Saturday at 9 a. m. New Orleans time will likely be used as basis to figure on the govern ments annual crop estimates, set for De- \ In advance of the census report, the Ginners is expected to issue all fA r4t.rN t@ let fHofa hot nine million Is generally looked for against the last period, November H, to Deeem- thing larger than nine million would tend to confirm the larger of private crop estimates, of late and would probably prepare the trade to look for final es- tiniate by the government slightly less than ten million. but if ginnings are less than expected there may be renewal of
 This afternoon Liverpool cabed the market perplexing. Neither bulls nor bears. seem to know what to do. Prices are fluctuating widely. upsettng Man chester.
 KAHN BROS. AND VIRGIN
 NEW YORK, Dec. 4.-The larger crop estimates as published yesterday had a most unsettling effect on Liverpool which market at one time was over 100 Eng respond to this acute weakness, however and the market enjoyed a good rally. Much uncertainty, exists regarding the forthcoming ginnings report and short ing the extent of the decline the tech nical position has not materially improved to reach an even position before report is issued and the crop is gaining ground daily and the market must look to X continued brisk demand for, the actual to sustain prices well above S5 cents.
 Liverpool Il a. m. bids: January, 35.15d ; March, s54id; May s5.5sd; July, s4.e5di
 Liverpool due December s5 z January, a6 sod; March, 2o.55d; May. 20. sod; Jny, 2od; October, 1s.s2d.
 NEW YORK. Dec. 4Ecotton was up set today by the poor showing from Liver pool and the market met heavy selling pressure on the opening.
 Ginning and crop estimates were to have been increased and the fluctuations in our market were wide and frequent. It opened 100 points down on ginning .rumors and after fluctua ting wildly, finally recovered practically all the loss for the most active positions. than due at the time of opening.s The general belief is that the decline was caused by a report that one of the private g, soO 900 to 1o.5oo, 900. This was soon followed by rumor from New York of ginning forecasts of 75o,oo0 for the period a gainst 450.0o0 last year. Spot houses bought heavily on the break, thus prob ably preventing worse decline.
 Wall street sellers are said to have COW cred largely on the first break. When local sellers tried to cover later in the day they found contracts very scarce. Sentiment is pretty well mixed at the close, even in the face of the sharp rally on tho close.
 We Believe conservatism is advisable on the buying sidc.-Fenper and Beane.
 HUBBARD BROS. & co.
 NEW YORK, Dec. 4.-Iverpool this morning was very sharply lower than ex- pected and heavy liquidation was report ed of speculative cotton held by both the and London. It was also ru- mored that the National Climbers had is- sued a large crop estimate, but these ru- mors were not confirmed in the market. On this side, here, prices opened at a sharp decline, but at no such lower level as was witnessed in Liverpool. American mills were good buyers in the decline, thus steadying our market to about 8 half cent pound or under last nights closing paturaI at this level of prices and are a plain indication of the danger which mus. necessarily accompany a market forced to a very high level by a short supply. It is settled until after the British general election. which is due on Thursday, and until the political situa tion is thus cleared in Great Britain we do not anticipate important consideration and may lead to lower prices for the moment. as the demand in the English has been the leading factor of the market for past month.
 Liverpool futures are due tomorrow: January. 2o.61d.
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