The Birmingham age-herald., 1924-07-25
COTTON LETTERS

COTTON LETTERS
 NEW ORLEANS, July 24.-After working into new high ground for this upward movement, the market declined sharply as a result of prospects for more favorable weather in the west belt.
 Local weather bureau says there will be showers in the northern and west portions of west Texas and thunder showers in Oklahoma and northern Arkansas tonight and Friday, while generally fair weather will continue over other portions of the district, and that it will be cooler over north DOT tion of district.
 Crop advices of late from east half of the belt denote improvement as re- suit of less rain in that section, but reports from central and west portions of belt conflict, some claiming crop to be holding it's own while others state drouth is damaging, especially to young cotton.A
 Inasmuch as the Texas condition de- clined one point between June 25 and July 16, it is probable continuance of drouth over most of state has oc- casioned further deterioration since July 16. /, Unless the needed rains are provided in the immediate future, chances are that Texas conditions will be several points lower than last year for July 9 than last years 71 and the 1O-year average for, Texas of 70, which is sig nificent since Texas has nearly 40 per cent of the belts entire acreage-H. & B. Beers to J. F. Willingham & Go.
 NEW ORLEANS, July 24.-The cotton market churned higher in @ the early trading Thursday morning, stim ulated by good Liverpool and failure of rains to show up in the west. At noon futures were around 90 points down from high.
 Liverpool was about 17 penny points better than due shortly before the opening here. .t
 One cable from Liverpool said, ."Ad- vanced 9on reports of drought doing harm. Course of market uncertain, spot demand poor"
 The early weather reports indicated no rains in the belt with the exception of few showers in Alabama, but none in Texas.
 The forecasts hold out very little hope of rain, the barometer lines show a low lover the Texas border which may bring some showers into west Texas.s .'.
 The dry goods markets report bet ter inquiry, but sellers are refusing bids at low prices. Advise selling on bulges-Levy Aronson to S. R. Stew art. saa sA
 NEW ORLEANS, La., July 24.- Cotton climbed sixty points for July and 70 for the new crops to new high levels shortly after the opening, on absence of rains in the west, continued high temperatures and good cables, Posting of the map which indicates cooler weather for the northwest started wave of selling which ap- pears to have been started by some big traders in, New York who were cred ited with having been the largest buy CTS in the recent upward movement. The selling was based on the theory that cooler temperatures would bring much needed rains for Texas and other parts of the west which are suf- fering for lack of it. Predictions of showers in Oklahoma, northwest Texas and Arkansas by the weather bureau acted as a damper on buying and ac- celerated the liquidation as it was ac- cepted as cnofirmi1g predictions of some map readers to the effect that relief is near. The map does not indi- cate to us relief for Texas is in sight and our long distance forecast does not indicate it either.-Fenner and Beans. tf
 NEW YORK, July 24.-Trading on the higher opening in cotton was large, particularly in October and in- cluded further short covering and also heavy realizing by recent buyers. The market reacted a cent where the de- cline was checked by resting orders and covering by early local sellers.
 The weather map was clear except for light showers in Georgia and Ala bama. The Texas, Oklahoma and Arkansas weather detail showed no rain and maximum temperatures pret- ty high. The July contract sold up to S0,40 and it's initial strength on the opening helped to boost October. The forecast was for showers all around Texas but noe rain was predicted for the big producing sections of the state and until it gets rain reactions may only be empOrary.-John F. Clark and Go.
 NEW YORK, N. Y, July 24.-Liv. erpool was again sharply higher than expected this morning, the result of continued hot weather in Texas. Our market responded and advanced into new high levels but ran into very heavy liquidation, which was increased dur ing the day as it was felt that the weather map indicated possibilities of showers developing before Sunday in Texas.
 After such a rapid advance as has taken place, a substantial reaction will be in order at any time and unless we get relief in Texas, we cannot expect the market to decline excepting for na- tural overbought. However, at these prices, we consider it is well to observe the greatest caution, because, as stated above, if rains do come in Texas, the market will not stand up to it. Liver pool futupes are due tomorrow October 16.25d; December 15.S4d.-Hubbard Bros. and Company.