The Birmingham age-herald., 1924-02-08
COTTON LETTERS


 NEW WORK, Feb. 1.-The market has been reactionary again today as offerings credited largely to specula- tive sources have been in greater vol ume than could be absorbed by. the limited trade demand through resist ance has, been rather better than in the previous decline and it is fairly obvious that a good many contracts were taken out of the market by price fixing during the reaction. Spot advices remain bullish and very little of the selling represents hedging. .Liquidationn by scattered longs is also generally con sidered4 -to---have heen thoronsd. but iadvfceB ffSm goods markets while. in- -dicating@ @-seme improvement do, not show any such broadening in the de- mand as would imply a substantial ip- crease in requirements of raw material for the immediate future. Rumors that a private authority would issue q bull ish estimate for consumption for Janu- ary led to some buying around. nopn, but the rally did not bring in general demand and failed to hold as disap- pointed buyers turned their cotton loose again. The period of irregularity is apparently not over and until the mar ket takes a more decided set trad-' ing position looks best with prefer ence for the constructive side of easy markets. fEE .ra.
 There will be waves of short cover ing at times which will carry prices up but reliable substantial advance must bssproceeded by either a stronger goods market or. some development causing anxiety over the next crop. Holders of the actual are reported very firm with little offering and no pros- pect of pressure from that source with quickly and easily develop.-Post and Flagg to shannon and Co.
 NEW YORK, Feb. 1.-The setback of yesterday continued in a moderate way today under the selling from New Or were also slightly lower than due. It was generally expected this morning on the opening that the market would sell off further than 1t did. on the idea that the reaction would go further. However. the market met buying or ders at limits which absorbed the cot ton, and these buying orders were at- tributed to price fixing. There was no particular feature during the day., at- though at one time it was rumored that New Orleans brokers were buying quietly on. the theory that the con- sumption figures would be bullish. Market at. times today acted a trifle oversold. There is no particular req son for the market to go down, but rather factors are at work that would favor an advance as the selling of yes- terday and continued bad weather over the belt ,retarding new crop prepara- tions. The October position was rath- CT strong in view of the fact that 1t is generally believed that there Is con- siderable selling of October in Liver pool and purchasing of that month in New York. We expect the market to steady up and mprove.-Hubbard Bros. & Co.
 NEW YORK, Feb. 7.-Influences surrounding cotton today were unfav- orable since the press and financial bulletins carried a good deal of com ment on increased mill curtafiment. A gloomy picture is painted of the indus try in New England, and the president of the National Retail Dry Goods as- sociation, addressing a convention of that body yesterday, warned against hysteria over scarcity of merchandise.
 Spot news continued bullish, but the apathy of~the market in face of the strong statistical position indicates, Tor the present 3t least, supply and demand have lost their Influence, more especial ly as mp4 discussion has recently arisen oS6r4 just what the carry-Over at the end of the year will be. We have before called attention to the continued operations. of southern mills and we confess we cannot fol- low the mental process which goes to increase stocks of. merchandise which must be sSld within 50 to 90'days on the basis of the new crops, which are at a discount of $25 per bale. Unless we are to have a much better demand from abroad for the actual, we believe the in- Q fa sfrYNraf fl goods opsthis side of the water tosmove Ethefr st1cAssin volume will react unfavs ] orably on prices.-Fenner < Beansefto Kahn Bros. & Virgin.