COTTON
DEMAND CAUSES RECOVERY
NY Times – 1940
 Cotton
trading was on a moderate scale with price fluctuations
within a range of about 50 cents a bale. With foreign
markets closed most of the week, American rings were without
overseas impulse. The trading principally was along the
line of liquidation, profit taking, short covering and
price-fixing.
The spot demand fell off materially, owing
to the holiday and stocktaking period. Spot sales were
light in all the Southern markets, falling even behind
the corresponding date last year on one or two days.
Day-to-day fluctuations in futures
prices were comparatively narrow and final levels were
at net advances of 25 to 29 points compared with the
close of the preceding week. The market was fairly active
at the end.
The demand for cotton for export also
fell off, due largely to the protracted recesses abroad.
Traders, however, are inclined to be confident that
it will revive promptly.
Most of the foreign crops are short and it is difficult
to move them to European markets owing to the war, while
the virtual failure of the crop in China will cause
Japan to buy freely of American cotton. Actual exports
last week were fairly large, however, and the comparison
with last year was not only good for the week, but for
the season to date as well. Exports since Aug. 1 are
now more than a million bales larger than for the corresponding
period last season.
Offering of spots continues light and,
as a result, there are increasing releases from the
loan cotton of 1938.
The trading principally was along the
line of liquidation, profit taking, short covering and
price-fixing. The spot demand fell off materially, owing
to the holiday and stocktaking period. Spot sales were
light in all the Southern markets, falling even behind
the corresponding date last year on one or two days.
Day-to-day fluctuations in futures
prices were comparatively narrow and final levels were
at net advances of 25 to 29 points compared with the
close of the preceding week. The market was fairly active
at the end.
The demand for cotton for export also
fell off, due largely to the protracted recesses abroad.
Traders, however, are inclined to be confident that
it will revive promptly.
Most of the foreign crops are short and it is difficult
to move them to European markets owing to the war, while
the virtual failure of the crop in China will cause
Japan to buy freely of American cotton. Actual exports
last week were fairly large, however, and the comparison
with last year was not only good for the week, but for
the season to date as well. Exports since Aug. 1 are
now more than a million bales larger than for the corresponding
period last season.
Offering of spots continues light and,
as a result, there are increasing releases from the
loan cotton of 1938.
Reproduced with permission of the copyright
owner. Further reproduction prohibited without permission.
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