Land Flooded by Heavy Rains:
Increased World Consumption Predicted New York, May 12.
The past week's cotton market has been broader than for many months and, on the whole, has displayed a strong undertone, notwithstanding a re-action of three-quarters of a cent from the high level of just under 20 cents for the fall and winter positions. Buying has been very general, and, while. many in the trade believe that there is something more behind the advance than weather alone, it is safe to say that the bulk of speculative demand twas based on the continued unfavourable weather in the south, Heavy vains during the week flooded large sections of bottom land in Texas, while the flood situation in the Lower M ppi Valley shows Jittle, if any, improvement, and thousands of square miles of rich farm land in this. district are still many feet under water, with no prospect-of drying out in time for cotton planting. As the trade previously had been fearful of ai poor crop start, these further rains in the Southwest increased the apprehension and caused demand to extend into spot as well} sas the futures markets.
Tt is generally admitted that the cotton crop start is two to three weeks late, that the danger of damage from boll weevil is thereby! qe monsoon has aavived in increased, and the acreage is likely to be smaller than at first antici-; pated.
"The weekly crop report of Geo. Ti. McFadden & Bros. places the acreage increase. at 15 per i y cent., with a possibility that it may be less than this with a continuation of unfavourable weather. The average idea as to increase is still between 10 and 12 per cent.
Boll weevil have already made their appearance on the young cotton in Georgia and Alabama. A Georgia despatch received to-day stated that, on young cotton just up, as high as 27 weevils had been found in a patch only three feet square.
YPrade news has indicated the probability of a heavy world consumption. Manchester has been doing a larger business in piece goods, with increased demand from India and, according to reports received from there to-day, British manufacturers are greatly concerned over the question of supplies, and a meeting of the British Spinners' Federation is to be held to-day to consider the outlook, probably with a view to solidifying British textile trade support for the extension of cotton growing in the colonies. Reports from the domestic goods trade have also indicated a more active business, at advancing prices. Sentiment, both in trade circles and among the commission houses, continues of a strong bullish average, and 25-cent cotton is freely predicted—Reuter.
Text read from the printed page and cleaned; old type leaves the occasional error.