The Birmingham age-herald., 1924-09-24
COTTON LETTERS

| COx1OIN LEIIEKS NEW YORK, Sept. 23.-The govern ment report showing condition of s5.4 and an indicated crop of 12,5s6 ,00O bales was a complete surprise to the vast majority of the trade, although confirm ing the opinions of those who have watched the results of the drought this pa.| summer. We quote for your con- sidera. >n and careful thought. the open | ing paragraph of the government sup plemental report as follows: Effects of the drouth in the cotton belt are becoming more apparent as time passes. A similar observations applies to the effects of the late cool spring, and in some degree to damage by the boil weevil. Lapse, of time is revealing the i'll effects of causes whose impor- tance had been uncertain" Naturally, ! it is too soon to judge exactly what the immediate effect outside of the tempo rary advance today will be-.
 There is no question but that there Is still a heavy movement to be disposed 1 of, but when 1t is realized that the vast majority of the spinning world have bought as. little cotton as poss. Dle that there Is very limited amount of goods, and that the shelves are generally bare l cult to foresee that ultimately the small crop being produced this year, espe- cialIy as the weather has been bad since this estimate has been made up, will be inadequate to supply the de- mands of the world and that with the disappearance of the hope of thir- teen to thirteen and one-half million bal crop, the tendency of prices will be to recover and advance to higher levels.--Hubbafd Bros & Co.
 NEW ORLEANS, Sept, 23 A small I CT crop estimate from the bureau than expected and smaller ginning returns than looked for brought on quick | covering movement and prices climbed | 195fpoints in a few minutes. Values re- acted about 70 points after the first bulge but the decline met with good buying and the market rallied again in the late afternoon when best prices of the day were made. They sold 20O points up on this bulge. Reports of storm in the West Indies which was said to be near Cuba probably stimulated much of the late buying on account of possible unfavorable developments over night. Todays estimate showed de- cline in crop outlook of oLly 191,000 bales since the first of the month but was close to 100000 bales. The fact that the government says the effect of | it's forecasts appear to be on declin- ing instead of ascending scale as the trade generally expected was the real uplifting influence. The government appears to have definitely gotten away from predictions of 13, ,000, ,000 bales. An other influence was the fact that gin nings for the 16 days under most facor- able weather totalled only 704.O00 bales compared with 2,093,0O0 for 25 days in September last year. The gtnnings re- turns do not point to anything like the indicated yield fof today's forecast and if three per cent be deducted from the acreage, the amount which the bureau admits has occurred, it's forecast of 149.3 per acre indicates a crop of about F, 200, ,000.-Fenner X Beane to Kahn & Virgin.
 NEW YORK, Sept. 23.-Although the | government indicated crop was only about 100000 bales less and the con- dition figure hardly point less, than expected, it sent the market to the limit because of larger over-report short tn- terest than was generally supposed to exist. These shorts ran to cover and found little for sale, until the market was up 175 points, where hedge selling and profit taking supplied theSdemand. Prices eased off quickly nearly cent but later on new buying came in, much of which was said to be for the mills. It cannot be said that .bearish senti- ment locally has been materially changed by today's developments, most comment after the report being against the market and many doubted the cor rectness Of the figures.-John F. Clark G Go.
 NEW ORLEANS, sept. 2S,-Respond- ing to a somewhat smaller government Act the market, after ruling lower in the early mornin, scored an important ad- vance, inviting realizing, resulting in a slight reaction.
 Government report: Condition, 55.4 against 49.5; indicated yield, 12596,0O against 11015, 100; indicated yield per acre, pounds, 1892 against 1877; ginned, 2,663, ,000 against 2,400,000;' acreage, 40,- 4O3, against 3S,7O9,O0O; final crop, = against 10,140,000.
 |, A private cable rom Alexandria, Egypt, reported Egyptian crop now es- timated at 100000 cantars under last years yield, saying at one time crop was estimated at hlf million over last years yield.
 Advices to Washington, however, say weather conditions in Egypt have been favorable for the cotton crop and that the Monsoon was favorable to the cot- ton crop in India last part of August and first of September, but shortage of water for irrigation developed about the middle of August in Mexico, Oower California;, and has proven to be very serious for the cotton crop.
 In its summary Washington reported in part: "The boil weevil is becom- ing more apparent in North Carolina, South Carolina and in central and southern Georgia. It is found that some bolls that were considered safe are either punctured by weevil or shedding because of drought or rains. In North Carolina, the weevil has done consid- erable damage in all the coastal area and also in the lower Piedmont dis ltricts, the fact remains that through out most of the cotton belK the weevil damage is very much less than that of recent years.-H. & B. Beer to J. F. Willingham & Co.