The Birmingham age-herald., 1924-08-06
COTTON LETTERS

NEW YORK, Aug. 5.-The market opened easier this morning on. private reports of scattered rains throughout Texas. This brought in selling from commission houses and liquidation of some long cotton. The rains, however were not of the type that would be really beneficial in breaking up the drought However, they were, sufficient to bring about this selling, and these rains were confirmed later by the de- tailed weather reports, which showed precipitation In a few of the districts in Texas. However, on the first ap- pearance of any buying the market advanced sharply, carrying prices over the closing; of last night. As yet, there is no indication of general rains, and 1t is now the fifth of August; and, bas- ing everything on past records, if this drought does not break in a weeks time, the crop in Texas will be in a very critical state, As regards the sfu- ture course of the market, we still continue. to expect higher prices, in view of the potential demand that is bound to come in the fall, due to the fact that stocks of goods are extremely low in the hands of retailers; and there have been many cases of late where jobbers have wired mills for standaFd goods and the mills have been unable to fill contracts. Therefore, in view of the scarcity of goods and the possibility of not making an excessive crop leads us to look for even higher prices.
 Liverpool futures are due tomorrow: october, 16.2Sd, and December, 15.90d.- Hubbard Bros. 6 Co.
 NEW ORLEANS, Aug. 5.-Cotton prices were steady in the early trading Tuesday, showing small advance after an early dip on a disappointing show ing by Liverpool. The exchanges were aAa 4 it was realized, accounted for most of the needed points at Liverpool. Rains expected in the west again failed to materialize.'
 The weather map showed rains at only three stations in the belt. Late Monday afternoon, numerous showers in Texas were expected in the west overnight. Light showers at Austin, Lockhart and Pearsall, Tex, were re- ported by a private bureau; but they iRust have been very light, as they failed to show on the map. The barometer lines showed two lows in the middle west, but were not considered of sufficient depression to bring good rains. The trade is in the same fix as for several weeks-looking for rains in the west that never come.
 The Southern Products company is- suel it's crop estimate okS12, 400, 900 bales; other private report estimates the crop at 12,425l000 balesy These are in line with recent reports.
 A cable from Liverpool says, Crop reports becoming more favorable, mar ket influenced by firmness of exchange, better spot demand."- & Aronson to S. R. Stewart.
 NEW ORLEANS, Aug 5.--Cotton was on the upgrade most Of the day in spite of reactionary Liverpool, and at R.A a4 Failure of rains to materialize in Texas overnight, Information to the effect that vesterday's showers in the southwest were local and of little benefit, swelling volume of complaints from points in Texas and other states and the en- couraging news from abroad were the uplifting influences. Spots were also reported in active demand in the south west at very high premiums. Shorts appear to be getting apprehensive that the government may take the drought into account in making up it's estimate if 1t is not broken before the eighth, when its report will be issued. If 1t does, we are apt to get a lower con- dition figure and smaller crop estimate than is now generally expected. Even ing-up, or realizing in advance of the bureau, may prove a disturbing factor for a time. We believe, however, that the buying side will prove the most profitable as long as the drought in the west continues --Fenner & Beane to Kahn & Virgin.
 NEW YORK, Aug. 5.-Initial cotton prices were 20 points down on cables and rumors of showers in Texas, but prices rallied later on, the map show ing no rain. The official detail later showed light showers at only five sta tions in central and southwest Texas, New Orleans wired that drought com plainta from Texas were increasing.