The Birmingham age-herald., 1924-08-19
COTTON LETTERS


 heavy selling made its appearance to- day based on the large, crop estimates which were issued last week, and on the Watkins Bureau indicating a crop of 13j340,000 bales. On the decline there was fairly good trade buying both for Liverpool and American ac- count fixing prices on call cotton. Sentiment in the market and through out the south is extremely bearish, based on the theory that big crop was assured on two ideas. First that the boil weevil would do practically no damage this year, and second that the drought in Texas had been broken. As to the first, there is no question that the weevil damage so far has been very small. Whether 1t will be large or not will depend on the weather con dition during the next few weeks. A rainy Spell now would very greatly in- crease weevil activity. As to: the drought in Texas, it has been broken in some localities, but it is by no means general. Nevertheless, the feel ing exists that a much larger yield than had been indicated at the end of July Is to be expected. In the mean time the trade are quietly picking up contracts on the break, with the idea of averaging, should the market decline further we expect nervous irregular market until the government report is are due tomorrow, October 14.48, De- cember 14.20.-Huboard Bros 6 Co. NEW ORLEANS, Aug. 1s.-While early weather reports showed no rains of any importance in the west, the mar ket sold down below the 25c level when Liverpool came in lower than due and rumor was circulated that Watkins had Issued private crop estimate of 14,- 100000 blaes, including linters. At this time the outlook Is for showers in Ok lahoma and eastern Louisiana and more rain in the east, while the private fore cast said cloudy in Texas. Foreign ex- changes were somewhat lower, with sterling $4.63 and Francs 5.51c. Giles estimated the crop at 13,100,000 bales and the Memphis Commercial Appeal estimated the crop at 12,s24,00o bales and condition 64.9. October then sold down to 24.85c.
 Liverpool cabled "Undertone poor and bulls were reselling. Stop-loss, orders have liquidated considerable cotton and crop reports becoming more favorable" " The official forecast showed little in- dications of rain in the west. The map showed cloudy in Oklahoma, Texas Panhandle and eastern half of Texas, Louisiana and southern Mississippi. Clear in west and southwest Texas. Moderate business in Worth street. Levy & Aronson to s. R. Stewart.
 NEW ORLEANS, Aug. 1s.-A further important decline was registered today, due to additional large crop estimates | and more favorable crop weather in the southwest and more rain reported in some of the drought areas of the western belt, especially in north Texas and northern Louisiana.
 Returns to Memphis Commercial Ap- peal average condition 64.9, indicating a yield of 12,S2s, 900 bales, and returns to Gosho company average the condition 66.4 and yield 3,25S,000 bales, while re- turns to Watkins average condition 66.S and crop 13,s40,000 bales, exclusive of linters.
 Cables were much lower than expected and liquidation continued, apparently only starting, causing the market to decline sharply.
 If next Saturdays government report forecasts a crop of 1s,000,000 bales, this seasons indicated supply, including last seasons carry-over and linters, would total 16,0O0,000 bales, as noted by the following comparatives: American cot ton, worlds carry-Over, July 31, 2,S19,OOO vs. 2,573, 3,000.
 Under the circumstances, cotton would not be an investment, as there would be no incentive at prevailing prices to advise buying except at much lower price levels.-
 For the time being, or until next Saturday, the trade will have to reckon with possibility attending the govern ment's crop forecast, in anticipation of which more liquidation is hkely.-H and B. Beer to J. F. Willingham & Co,
 NEW YORK, Aug. 1s.-Cotton made new lows today under the same influ- ence that depressed prices the latter part of last week. There was further heavy liquidation on the opening, the tcontracts being taken by shorts and on moderate buying orders for foreign and domestic trade account. The low prices for the day were made in the afternoon on private advices of more beneficial rains in Texas. Reports from all sec tions now average good, nothing ii heard of the weeVil and the probable supply points to lower levels. barring reactions due to a technical condition John F. Clark & Co.
 NEW ORLEANS, Aug. 18.-Cottor was reactionary again today owing tS large crop estimates and rains or show CTS over portions of north-centraI ana northeast Texas and good rains ovei most of the drought sections of Louisi ana and Arkansas. There was consider able long liquidation during the early trading, coupled with considerable shor selling. At one time values sold & \ points lower than Saturdays finals. n lthe afternoon the market rallied 8