Messrs J. Spunt & Go) sed (Weekly report by courtesy of
inese Cotton:—During the past week the market was fairly active and firm on improved buying. by outside. speculators as well as active covering by Japanese short interests fand Tungchow dealers. An advance of about §2 per shih-tan has been Fegisiered and is ascribable to the less favourable weather, further im= evement in the demand for yarn, pacific news from the South and the emues of the U.S. markets conse: quent on the publication of the third government crop estimate, Although the US. Bureau Report. indicates ferop_of only 11,121,000 bales, which generally construed to be bullish, yet the cotton circles appear hanifest diffidence, as otherwise the market would have hed a greater impetus toward advances than is be: ing experienced. Even with a crop slow as 11,000,000 bales the total Supply would stil be about, 19,000,000 bales when the 8,000,000 bales carry-over is added thereto; and taking the world consumption of American cotton at between 12. to. 13,000,000, Dales, there need be no anxiety from statistical point of view. Further: more, the increasing growth of cotton other paris of the world, such as Russia, Africa, Brazil, Peru, ele, [serves' to compete with that grown the United States of America. It would therefore. be "imprudent at this time' to. anticipate any material advances in the values of the Amer tean' fibre particularly "at. the time when the Interior movements will Become heavier day by day with its concomitant hedge selling, With regard to the conditions of the domestic crop, such are not altogether as bright as was expected in the first report, yet the out-turn on the whole, it is believed, will not be tuntavourable. Owing 10 prices for old crop cotton having been artificial:
advanced to an extremely high limit during July and August, sp ners in general were deterred from, and avoided as munch as was possible, making commitments on such high priced raw material, restricting their Supplies to the very minimum and consequently' stocks inmost of the mills are very light. Recently. the demand for yarn improved to & fair extent andthe outlook for the Textile industries is brighter. Consequently several Chinese mills, Having the aggregate "200,000 spindles, which had stopped working for a Tong period due' to unremunerative business, are now preparing 10 sume work inthe next few weeks, hile those mills which were partially "active for some time are, now gradually resuming their full com-Dement. Owing to the reasons just mentioned those mills are coger acquire their supplies for prompt delivery even at a lillie higher rates, while the marketing of the new sea son cotton is just about starting but for yet all available. The opinion is expressed. that, barring unforeseen circumstances, "the market will be Keeping steady for the near future fand go lower at the time of heavy {Interior movements. It also becomes advisable for any trader, who is interested on the bear side, to sell standard colton futures in the Cotton Goods Exchange, as the prices for the same are comparatively higher than any particular grade. of actual cotton in the open market, while in rormal times the prices for standard cotton are always lower than that of actual cotton, for the simple Fea Son that the sellers enjoy the Privilege of tendering any class' of domestic cotton against the standard rade and, in most cases, such tenderble cotton proves to be of @ quality for" which. there is usually utile of hho. demand whatever.
"yarn:—Following upon the peaceful news from Kwangsi and. the appreciation in. values of cotton in the American markets, the demand for yarn improved very much, mostly from southern ports. The total turnover for the week amounts to about 20,000 bales both for spot and forward deliveries. Prices advanced about $9 for nest and $7 for distant 349] months. Stocks in the warehouses of the Cotton Goods Exchange are being reduced daily and a fair por-lon of the mills are practically bare of stocks. "However, as mill produetion will be increasing from now on, together with the probability of de-cliping values of the raw materi any operation on the bull side should be cautious and not. too en= thusiastic, Shanghai, Oct. ex-mill /Tungehow, Oct, ex-mil Ningpo, Sept. ex-mill Lingpao, Nov. exemilt 2...""!
Tone of the market:—Firm,
Text read from the printed page and cleaned; old type leaves the occasional error.