Evening star., 1941-07-28
Cotton Prices Stage
ACTIVE Advance
During Week
New York Futures Show
Net Coins of "a to go
Points in Period
B, the Associated Press.

bs tne ASscClaIeu fTeSs.
NEW YORK, July 28.-The cot
ton futures markets last week were
unusually active with prices moving
from one high level to another.
Prices of active futures contracts
on the New York Cotton Exchange
scored net gains of "a to 98 points
for the week. In the last three
weeks prices of futures have risen
successfully through the 15-cent, To-
cent, and 17-cent levels, and have
made successive new highs for the
IL years since 1890
Major forces in the rise were:
The belief that underlying economic
conditions are making for higher
commodity price levels in general;
indications of pressure in Washing
ton for higher prices for agricul-
tural products in general and for
cotton in particular; the continued
adverse development of the new
domestic crop, and the maintained
very high rate of activity in the
domestic spinning industry with
sales of goods by mills broadening
after the upward revision of price
ceilings.
Setback Soon Ended.
The only important setback that
the market sustained during the
week occurred on reports that the
Government might sell cotton out
of its large stocks. but the market
turned upward again on vehement
protests in Congress and a belief
that such action would not be taken
Trade ideas as to the size of the
domestic crop have probably been
reduced 100000 bales in the last
three or four weeks. In conserya-
tive quarters, not accustomed 10 60
ing to extremes, it is being said that
the crop prospect at present is only
about 100000 bales. In other
quarters, however, the crop pros
pect is believed 10 be considerably
lower.
Domestic mills are consuming the
staple at the rate OF about l0.75O.-
600 bales a year. Exports are run
ming extremely small, and the ex-
port outlook for the new season
is very bad. but whatever exports
there may be IN the new season
will constitute an additional call
on the domestic supply.
The raising of the price ceiling
on cotton goods, from a basis OF
SO TO 43 cents pound for standard
print cloths. was looked upon as
having a double significance. On
the one hand. it cleared the way
for renewed selling of goods by the
mills, which brought the mills back
into the cotton market. On the
other hand. II was taken as reflect
ing a disposition in Washington to
refrain from undue pressure on
agricultural products or manufac-
tured gooos made therefrom.
L. S. Policy Hinted.
The raising of the price ceiling
in cotton cloths was accompanied
by unconfirmed reports that the
administration may 60 very slowly
IN the matter of price control of
agricultural commodities. In this
/ connection it was noted also that
there is pressure in various quarters
in Washington to find a way to
raise the parity price for cotton
which, in turn, would raise the Gov
ernment loan rate on subsequent
crops.
1t has become evident from Gov
eminent reports on Government
loan stocks that only an extremely
small amount of cotton remains in
those Government stocks to which
borrowing growers still have title.
AFTER allowance for the lag in Gov
eminent reports, it would appear
that there is less than half a mil
lion bales in those stocks at the
present time.