'The uncertainty in the political situation and probability of an early' resumption of hostilities has been freely discussed on the market thi week and confidence is once again disturbed. This is a great pity, as trade inquiry is not by any means; Incking but in many instances. now being held back pending developments. Local values are barely: Jsteady; in fact some giving way is reported in Whites, but prices for 'Blacks and Fancies' are already ai mittedly low and are fully maintained, with small sales to Yangtze Ports land Tsingtao, Clearances are fairly satisfactory.
Tuesday's Auction 'The reasons mentioned explain less activity at this sale and are' responsible for_an all round easing in prices. An early recovery is anticipated directly: confidence is restored, as stocks in all consuming centres are light. lout the past week. Spinners for the time being appear to be inclined to keep out of the market especially for the domestic growth and are encouraged in this policy by the absence of any marked demand for their products and in as much "as prices on yarn show a downward tendency in so much do spinners expect by their present attitude to evolve commensurate rates in the raw material by means of which their efforts may finally be satisfactorily compensated. While it may be conceded that this procedure has a certain plausibility yet the anticipated outcome is very problematical in that such would seem to depend at this time more or less fon the financial strength of the farmers and their ability to retain their holdings until such time when general demand far the staple becomes imperative and in wi event they may attain the desired price on the product of their labour. In the meantime, however, the markets on the foreign fibre show a very weakish aspect and a considerable quantity of Indian staple has been booked by local mills at more favourable rates. As the quality of, Indian Cotton is very much better than that of the previous season, spinners prefer to cover their future requirements by such grades and show no confidence in the Jdomestic staple, particularly at this stage when its prices are much higher if compared with those of similar grades of the Indian growth. Certain authorities predict that heavy arrivals of Indian cotton during the next four or five weeks will probably press the holders to sell their domestic cotton at even sacrificial prices. These circumstances have to a certain extent dampened the ardour of the speculative element and the immediate future trend inclines more toward weaker—markets unless through some unforeseen events the situation will materially change itself.
Text read from the printed page and cleaned; old type leaves the occasional error.