Imperial Valley press., 1924-01-02
BRIGHT OUTLOOK
FOR GROWER or
COTTON in 1924
Well Known Broker Tells
In Detail "Whys"
of Situation

The T. J. West Company, cotton
brokers, have just issued their reg
ular report in which the recent
slight slump in the cotton market is
fully explained and comprehensive
reasons given as to why the law of
supply and demand will be bound
to work to the ultimate benefit and
financial welfare Of the cotton
grower: The report follows in full:
Up until Thanksgiving cotton had
advanced approximately 1000 points
or ten cents Il pound, with but
one small break during this ad-
vance, Il very unusual circumstance
III the history of cotton prices.
This brought about an unhealthy
condition in the technical position
as :, topheavy long interest was
built up, caused by pyramided bulls
and spectators who had bought
above 80 cents. There was no short
interest to take up the slack. The
British elections, which resulted in
the LaborParty getting control of
the British governmenf, helped the
decline which assumed violent pro-
portions for q time.
The statistical position is IS
strong or stronger than before and
since the market has been cleaned
cut and substantial short interest
built up, we have seen prices re-
turn to levels almost as high as be
fore the break.
Mill curtailment has been talked
Of since cotton passed the so cent
mark, but consumption has not de,
clined to any appreciable extent,
even when prices passed the SO cent
mark. The flow of cotton overseas
continues undated in the face of
the worst political conditions known
i'll Europe since peace (O was sign
ed. The German mark has faded
away to figure undreamed of by
even the worst pessimist, whl.o
French franc has declined to the
lowest valve ever known in modern
times, reaching cents as compared
with 4 normal value of 1913 cents.
Exports Are More
Exports for the first four months,
August, September, October and
November were 2,4S5,574 bales as
compared with 2,299,l99 bales for
the same period in 1922.
Consumption figures were j3l ,631
bales for November, 1923 as COM
pared with 541 1925 in October and
577,56l bales in November, 1922.
The average daily consumption has
been on the increase since Septem
Der when 0,160 bales were consum
ca each working day. This increas
ed in October to 20,S39 and in
November to 22,151 bales.
AS the season advances it grows
more apparent that not only is the
American crop short, but that :rops
outside of the United States are al
50 short Competition between
English and American spinners is
becoming keener and this condition
is causing higher prices. The basis
on low grade cotton has advanced
and strict low and low middling
cotton prices are much stronger.
The English mills have undoubt
edly secured the cream of the Am
crican crop and as consequence
the American mills are being forced
to buy the lower grades. In the
early crop months the English spin
ncrs re llizing, not only the short
age of the American crop, but also
that of the other cotton producing
countries, bought cotton wherever
it was offered, while the American
MILLS were holding off looking foc
lower prices even when December
futures dropped to 206S.
Crop Less Than 1923
The government estimate of 10,
0S1 900 bales is regarded by cotton
authorities as high. III 1922 tn.
final estimate was 9,964 900 but the
total ginnings were only 9,76l, 900.
The ginnings to December 13 wer''
9,548,S05 bales as against 9,493,296
bales in 1922. Last wear 26S,000
bales were ginned after this date. If
the same amount is ginned this year
tie total crop will be about 9,Sl6,-
COO. The difference of two or three
hundred bales in a short crop like
this will mean about as much to the
spinners us two or three inches in
II e depth of q lake when a man is
drowning in deep water.
The crop is far less than the
consumption requirements and cot
ron prices will continue to advance