The Birmingham age-herald., 1924-06-03
COTTON LETTERS

| report was as low or lower than the trade expected and the market shot up 60 points. but me more profit taking than the present small volume of spec ulation could absorb, so all the rally was lost. The majority of traders who watch cotton are apparently not yet seriously alarmed over prospects and are awaiting June developments before taking more than a scalping position. Cables were strong and over holiday weather unfavorable on which there was considerable local buying at the start. Room traders also bought on the report but seeing no response in the way of outside buying, sold out their cotton. The report and accom- panying comment by the department, however, is so bullish that 1t would seem that any decline should only be | temporary, one week of the next period, May 25 to June 25 has gone by dur ing which the crop probably went back. John F. Clark and company.
 NEW ORLEANS. La., June 2.-Cot- ton values rose only 33 to A points above Saturdays closing today after one of the most bullish reports ever is- sued by the government on the condf- tion and outlook for the cotton crop was made public. That the advance was not greater was apparently due to the fact that some large spot houses and traders accepted the advance as an opportunity to realize profits on cotton bought lower or to sell for reaction. The public bought freely on the early dips, but the selling came out in too steady a. stream for the market to absorb and pressure from this com bined caused values to slip. Today's estimate of 65.6 Is the second lowest ever issued by the government and in- dicates a crop of only about 11,000,- 900 with an increase of 4 per cent over the acreage reported picked.
 The outlook at the moment is for a yield far under the worlds needs. Such an outlook as this should soon stimu- late trade buying, especially if the weather continues unfavorable as seems likely. Selling mayw force prices some lower temporarily but we believe the buyers on reactions will make money. -Fenner and Beane To Kahn and Virgin.
 NEW ORLEANS, June 1.-The first of government crop condition report was released today and more than con- firmed the recent acreage of private returns by averaging condition as of May 25 at 65,6 vs. n and 10 year aver age of 72,S. Owing to the lower con dition of official report than generally expected, the market worked into new high ground today for this upward movement, but there was considerable realizing at the advance, causing values to ease off again. However the market received good support on all recessions. Prospects are for better weather, Oklahoma, Arkansas and north Texas, but unsettled is likely in other portions of the belt, perhaps showers, although official forecast is | fai
 If the south is to make a big crop this year the growing plant will have to make a wonderful improvement dur ing the next two months, as it did in 1920, otherwise final results may be disappointing, as was the case in the ments acreage estimate for this year will not be issued until July ?, to- days condition figures and average of private acreage estimates point to a yield of about 100000 bales exclusive of linters. Tomorrow, Confederate Me morial Day, a legal holiday in Louisi- ana, New Orleans cotton exchanges, will be closed.-H. and B. Beer to J. +. Willingham and company.
 NEW YORK, June 2.-Liverpool was much higher than expected this morn. ing, in view of the continued bad weather that was experienced over the l report of 65.6 was far more bullish than expected and immediately upon it's issuance, heavy buying took place, which was later followed by profit taking. An hour after the report was issued the market had eased off from the top considerably and was rather quiet. Such a condition report at this time of the year is almost a disaster and it is hard to see how the crop can recover sufficiently to give us a large enough one to meet the demand of the trade this coming year. We are indeed very sorry to see such a condition re- port and sincerely hope that this month will bring better weather so that the crop can overcome some of it's handi- caps.
 It is our opinion that the market may ease off somewhat, but very little can be expected in view of the low con dition. We cannot see anything but ultimately higher prices later in the summer. The market showed one thing after the report was issued and that is that the majority of the spectators continued bearish. The volume of business is so small that very few acted upon the report. Liverpool futures are due tomorrow. July, 1752c; October, 15.65c.-Hubbard Bros. and Company