(Weekly report by courtesy of Messrs. J, Spunt & Ca.)
Chinese Colton:—With the excep-ton of the current month's deliveries, Jour market moved within rather narrow fluctuations during the week under review and at the close experienced a sudden decline of about '31, consequent on the publication by the "Chinese Cotton Statistics Asso-dation of a bearish crop. report, Indicating an estimated, area of 55,- 041,006 mow and an estimated crop of 16,379,194 piculs, which intimates Jan increase of 87 per cent. in acreage and 101 per cent. in production, establishing a record crop in the annals of the Chinese cotton growth. Most of the increases are centered in the Shantung, Hupeh, Honan, Shans, Shens! and Szechuen provinces and Jare due to the following reasons: (1) some of those provinces which suffer~ Jed from flood damage last year have been very much relieved by the ex-[cellent weather conditions this spring, making the sell so favourable for planting that the farmers were encouraged in extending the area for Jcotton, (2) the values of cotton are higher than their other farm products, (3) the serious prohibition of poppy planting tended to an increase {n'cotton growing in the Shensi and Szechuen provinces and (4) the substantial support afforded by the Na. tional Government both in distributing high grade cotton seed to farmfers and in instructing the various Prominent banks to extend Anancial facilities to the cotton growe According to latest reports, crop conditions in north Kiangsu (such fas the Tungchow, Tungdai and Hal-men districts) are not so favourable as in the other provinces and the yield per mow in that province may be estimated as being the lowest this season. In our opffiion the estimate of total crop of over }000,000 piculs may be considered as being too optimistic; however, a crop of between 13,500,000 and '14,- (000,000 piculs could be confidently ex pected.
Astothe old crop situation, we are Informed that the report indicated in our last report of 50,000 shih-tan of August cotton having been set off, by the bull syndicate with the bears, at $45, appears to have been not altogether realised owing to some hitch in the negotiations for the transac~ lon. However according to the report emanating from reliable sources, 2 transaction of 20,000 shih-tan been set off, last evening, at $46, and the party concerned in covering their position is said to be Japanese. It is further reported that the syndicate have sold 'a few thousand piculs of Hupeh Silky cotton to local consumers at from $3 to $4 cheaper than the current August quotations. While tenders for August delivery estimated so far to be only about 30,000 shih-tan, the attitude of the bulls as to whether they will take up their contracts in the same way as they did last month, is very uncer-ain and rather doubtful in view of the lack of support from foreign markets as well as the weakness now being experienced in the domestic new crop situation.
'A fair volume of new crop buslness hag been consummated during. the week, both with Chinese and Japanese spinners, at quite favour-fable rates. If the present weather conditions continue for a further period of three or four weeks, still Tower rates may be reasonably ex-
"Yarn:—Some activity was manifest-edwin our market and a large volume of business, both spot and forward, thas been transacted during the past week. Szechuen dealers were the most active buyers. While spot prices fare moving in 2 more or less steady direction, a decline of about $4 to $5 per bale was recorded in the futures markets. The technical position Jmore encouraging and it is therefore rumoured that those Chinese mills which stopped for some time, will resume working in the not too distant future, Shanghai, Oct. ex-mill Tungchow, Asi, ex-mill Ningpo, Oct. ex-mill Shens, Oct/Nov. ex-mill Tone of the market:—Weale,
Text read from the printed page and cleaned; old type leaves the occasional error.