The Birmingham age-herald., 1924-02-06
COTTON LETTERS

NEW YORK, Feb. 5.--slishtiy disap- pointing cables and feeling that msny shorts had covered led to more or less realizing, with local short selling for a turn under which prices eased of, but ssllers did not show much dlsposi- ton to press on the decline, and only q moderate demand was needed to re- cover part of the loss. The technical and what improvement has taken place so far in dry goods is mot considered sufficient to bring on any effort by consumers. to secure fresh supplies or fix prices on a large scale at advancing prices. The tendency at the moment Is to look for . trading market around 35c for while. Since no pressure is anticipated from the actual, it Is be- lieved there is further cotton for sale around that level which. while 1t will all be urgently needed eventually, might not De very readily absorbed in the present rather dun state of the textile industry. Only involuntary support is expected from speculative interests on the whole, which will come from cov- ering shorts and not from fresh com mitments for the rise, though on good declines older bulls show some dispo- sition to take on fair lines. The main support, however, is the trade short interest and the necessity for merchants to secure the cotton for which they are under contract to the mills. New crop advices leave good deal to- be desired; and in spite of a probable ,larges acreage, . period of better weather Is becoming very essential if the ground is to be properly prepared. Any alarm over the outlook there would be quickly reflected in more gen eral buying with rapid advance Post & Flagg to shannon ( Co.
 NEW ORLEANS, La, Feb. 6.-seIlers predominated in the cotton market to. day, and values slipped nearly as much as they gained yesterday, though the decline was much slower and met active opposition. A plus correction of 2S,o00 in the stock of American cotton in Liverpool, reactionary tendency of that market and very bearish construction placed on recent figures of world sup ply from the department of commerce by Theo. Price in today's issue of Finance and Commerce furnished the occasion for the early selling. Addi- ttonai selling and some liquidation was brought on in the afternoon by ru- rnors of consumption forecast of about 500,O00 for January, compared with 610,000 last year. Such consump- tion as this will not be really bearish, as only 461 ,000 bales were consumed in December in view of the shortage of supplies. The talent began to pick on and soon deprived it of effect. Using the department of commerce figures as a basis. Price figures consumption of American lint cotton at Il, 1,130,000 and probable carry-oyer of 1905, 900 bales of lint. The weather outlook is bad, and crop preparation, especially in the southwest. is getting further and fYIr~f har Ind rxrr} 1ovSr T C., .xr continues active. We believe much of the delay in preparations. which ap- pears likely, will have stimulating effect on the market and that buying on the dips will prove profita ble.-Fen- ner & Beane to Kahn Bros. & Virgin.
 NEW YORK, Feb. 5.-The market opened down on easier Liverpool cables, the idea abroad being that suf- ficient spot cotton had been bought in the last few days to satisfy at least temporarily the mill demand. Conse- ,quently, our market was in receipt of selling orders on the opening, and this selling continued from the first hour through cables and also from various points in the south.
 The market. however. absorbed the cotton extremely well, and the selling made very little impression on prices, as the market rallied shortly after, the first hour on rumor that consumption figures for January would be prac- tioally half million bales. With the exports running high and consump- ton continuing at the rate it has been, there seems very little likelihood of the market experiencing any decline of consequence; but, rather. 1t Is our opin- ion that the market will rally sharply under the influence of any buying or ders. It is generally understood also that the market is short in view of the recent lengthy decline that we have experienced. Outside business is still of very small volume, and until such time as. business expands the market can only move forward gradually, but nat sharply. Liverpool futures are due tomorrow; March, 19.55d; May, 19.51d; July, 18.97d.-Hubbard Bros.