The Birmingham age-herald., 1924-09-09
COTTON LETTER

NEW YORK, Sept. S.-The govern ment crop estimate today of 12,787, 900 was about in line with what the trade had expected The market hesitated and then broke under heavy selling by the south, who had been waiting for this report to come out before hedging against the early movement. The gen. eral opinion Is here that the market will not stand the weight of the pres sure from the movement which Is be- ginning to increase rapidly due to the premature opening and the clear wealth ! CT in the south, which Is permitting picking and ginning.
 On the break. American trade inter ests were excellent buyers, fixing prices and absorbing much of the cotton that was offered. We expect this character of buying to increase on any further decline from present prices and we doubt if the market will decline as low as many are now confidently thinking 1t will. Liverpool futures are due to- morrow, October, 13.47d; December, 1s.Sod.-Hubbard Bros. & Co.
 NEW YORK, 1ep.. s.-roday's fig ures indicating a crop of about 12.S00,- 900 generally met the popular local idea, and as so many had covered short cot ton, fearing a surprise by the govern ment, there was scramble to sell cot ton. I believe 1t can be said that the majority opinion here still thinks the crop is nearer 100000 than 12,500, 900 so that until something conclusive de- velops to upset such view, rallies will be met with cotton.
 The trade, remembering last seasons consumption and attendant hardships, will hardly be revenous buyers nor whl the speculative element be keen to un- derwrite a supply which, with the carryover. now appears to be in the neighborhood of 100000 bales. So with an ample supply of new cotton overflowing the market lower prices seem clearly indicated. Would advise, however, against selling after big breaks.-Fenner & Beane to Kahn G Virgin.
 NEW YORK, Sept.S-The government report indicating a crop of R,787 900 bales as of September l, was slightly less than many expected and its first effect was to advance prices 25 points with local traders leading buyers. The south, however, regarded the figure as full and sent up a flood of selling orders that depressed October to A cents and after rally, it broke that figure. Sem timent locally also turned bearish as the figures possibly meant thirteen mill lion or over with average weather and late frost. Cancellation of buying ord-
 
 and this coupled with the depressed state of the textile industry led to the belief that values migh sink considerab- ly lower. The weather was favorable and there was no other news of impor- tance. :. The market looks like sale on ralies.-John F. Clark & Co.,. NEW ORLEANS, Sept. S.-Cotton values dropped 100 points today after announcement of the governments con- dition and crop estimate, though the condition was lower and the forecasts smaller than generally expected. The fact that the bureau reduced it's crop forecast only 169,000 from it's August 16 figure was probably the influencing fac tor in the selling as such a decrease, if correst, reflects very little actual de- terioration.
 The summary of crop conditions points to more serious loss in condition and outlook than the condition estimate and crop forecast tends to confirm the many private reports in circulation of poor yields of lint and premature open ing of small bolls. The summary also says that the number of bolls reported safe on September 1 Is below the aver age. The ginnings figures were quite bullish and tends to confirm small crop ideas and estimates rather than those indicated by the governments esti- mate. BearlSn ldeaS are DelnB encOur- aged by today's estimate.-Fenner & Beane to Kahn & Virgin.
 NEW ORLEANS, Sept. 8.-Although governments condition of crop and yield was about as generally expected, ginnings, to September 1, were larger than generally expected, causing prices to decline.
 Returns to the government as of September 1 averaged condition 59.3 against 64.9 on August 16, this year, and 54.1 as of August 25 lart, indicating a yield of 12,7S7 ,000. bales against 12,956,- 900 as of August 16, this year, and 10,- i 7SS000 as of August 25 last year, when final outturn of crop was only 10,12S,- 900.
 Ginnings to September 1 this year were larger than generally looked for, considering lateness of the Texas crop amounting to 95s,204 bales against ,165, -560 bales to corresponding date last year, of which Texas furnished 630, ,842 bales, against 1,089, ,530 last year.
 Considerings the indicated crop, com pared with general expectations, the i market ruled weaker than generally ex- pected. In addition to the heavier gin- nings than looked for, the weakness was attributed to trade interests hav- ing cancelled numerous open orders to buy.
 A feature of the situation is that there was heavy deterioration in South Caro-