The Birmingham age-herald., 1923-12-04
Cotton Letters
H, & R. BEER

"S d result or less favorable reparations news, larger private crop estimates and report that Bombay futures market was closed except for settlement of business and that maximum rates were fixed to help the bazar through its difficulties in clearing.
 The refusal of the United States to par 'lclpate in Premier Poincare's proposed separations investigation gave the plan 8 setback. Four additional private final crop estimates were issued today in ad- vance of the annual crop estimate by the government due December 12, ranging from 9,765,O00o to 10.o74,0o0 exclusive of hnters' or larger than recent estimate for a yield of only 9,320, 900 to 9.500,000 oc- cassloned values to advance to the highest levels of the season and it only nat ural for values to recede in consequence of the increased crop estimate.
 The most depressing development of the day however was report that Bonn bay India cotton futures market was closed except for settlement of business and that maximum rates were fixed to help the bazar through it's difficulties in clearing
 The reported fixing of maximum rates were taken to mean that maximum prices have been fixed for India cotton, which assumption reflected in heavy lequi- dalton in New York, said to be account Of large London interests. The report that London liquidating unsettled the market materially.
 Because of the larger crop ideas, it is possible that there will be more pre- bureau liquidation. particularly if the
 
 In the meantime trade is awaiting es- innate of the national ginners associa- tion as 10 the probable amount of cotton gnned to December l. report on which the census bureau will issue on the 3th inst.
 The Presidents message to Congress Wednesday and the English election Thurs day may have some influence on the specu- lative market sales.
 The reluctance with which the dry dry goods market in New York has re- sponded to the big advance in raw cot ton, many descriptions being far below the cost of replacement with spot cotton ruling so high, is dscouraging.
 As yet the market appears to be in process of liquidation.
 SHANNON & co.
 NEW YORK, Dec. 3.@The market has been unsettled and reactionary under heavy realizing with local selling for short account induced by feeling that the next ginning report well s the final official estimate of the crop would show la rger than ideas recently current. In Inc amos. complete a bsence of speculative short interest offerings have been ab- sorbed in very creditable fashion and ~ay developments suggestion further roadening of the demand for goods would bring on an effort to replace long lines and at the same time increase the trade demand. Much fixing of prices still re mains to be done according to very re- lia ble information and spot adviceS have $ been on the whole favorable today. while reports from ManchesteI indicate that a very large turnover look place there last month, the total of which will com pare very favorable with any single month in the past two years.
 4 The selling today has helped the techni- cal position and a further reaction. if it occurs will present a good opportunity for purchases.-Post and Flagg.
 KAHN BROS. & VIRGIN
 NEW ORLEANS. Dec. S.--After open ing 20 ponts up on good Liverpool, the market turned reactionary on increased crop estimates. talk to the effect that the next ginning report will confirm the larger estimates. report that London was liqul- dating freely and our market sold off Our 'ea estimate of s.7s5,oo which was ac- cepted as bullish, but prediction of our crop remains to be ginned after the date of their reports. about November 26, turned attention to the proba bility Of the sobered many otherwise buillishy in clined The other estimates ranged from 9.SS1.o0O to 10.i74000, and rumors that one of the bureau which recently pre- dicted a crop of 9,S20,O00 had raised it nearly half a million bales tended to 9,5o0.oO0. which most of recent ad- vance predicted, and increased the rnent in Bombay through prohibiting fu- ture sales fixing of minimum price had , 8 sentmenta effect some m at1rapufs he som ea situation. but it was most probably due to eXpecta tion that the Presidents message will not hold gut anything encourasins The :. market appears likely to remain more or less unsettled until it adjusts it. self to higher estimates and increased gnnings. The sentiment is as bullish as ever.
 NEW YORK, Dec. 3s-Although Liver pool continued it's advancing tendency at the time of opening, we failed to re- spond, probably due to the estimate of 9,900.000 made by the Commerclal Appeal and followed later by our estimate estimate of of 99o0 900. Trade continues brisk in Man chester and Lancashire and cables stated that from last weeks experience 1t is reasona ble to expect price around 44c or higher before halt could be expected
 We think has hsen gssd part ap Sf deas ,e of late crop well under 9,500000, and it is easy to imagine situation next July when have been consumed with no carry over left to bridge the period before new crop becomes available. It is sale to as sume. however. that an utter exhaustion of supplies will not exist. Agains such a possibility the world will protect itself by the withdrawal of demand, bringing about sharp reduction in consumption. From reports 1t appears that aside from buying by the mills there has been large con siant buying power by the public which may be reasonably excused on anticipation or buying in expectation of much higher The stock market had it's Influence on cotton today and as someone has said,
 
 srsss with their radical legislation that las been predicted. Present price levels and the technical condition of the market justify extreme caution.
 Liverpool, II a. m. was: January. 35. .SSc: March. S6.osc; May, 36.22c; July, ss,s6c; December 36.45e.
 .aili4d; 1lxetpHs. March 21.i5d; May 2o97d; July, 2O49d; December, 2l12d.-Fenner & Beane.
 HUBBARD BROS. < co.
 VT nap h tc morning was sharply higher than due; Appeal crop estimate of 9,9OO,0O0 bales, exclusive of linters, brougt heavy realiz- ing into our the ey the eary at ernoon. For a time trade calling checked the market, but the selling pressure was sufficiently heavy to bring setback of cent pound from Saturdays closing prices The immediate course of the mar ket will depend somewhat upon the ac- onenng tomorrow. If the English spin ner continues to take cotton freely as he has recently and Liverpool does not fol- low our decline, it is probable the mar ket will receiver quickly. We must, how ever look rather to the English market for the lead at present as our mills are stiil unsb ble to sell goods on q, basis with cotton, so that they are not the principal buyers as was the case last year. The local sentiment is that iurtner reaction natural in view of the long continued ad- vance. , December ,2112d; January 2l.1Sd.
 
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