COTTON GLUT.

New Zealand Mail, Issue 1717, 25 January 1905, Page 74 (Supplement)

COTTON GLUT.

OFFICIAL REPORTS' OF A RECORD ; CROP, | NEW YORK, December 3. j The Government estimate .of the cotton crop at 12.162,000 bales caused more surprise on the cotton market to-day than any other estimate of recent years. While a few extreme bears had predicted an estimate of over 12,000,000 bales, the average opinion, even in local beaush circles, had been that it would be considerably less. Another sensational break in prices followed the announcement of the figures. The decline which has been in progress for over a month, and which had already carried the market down from 11 to 8L proved insufficient, in the estimation of the trade, fully to leflect the new conditions and crop sizes lenorted There was undoubtedly a big short interest but, in spite of covering purchases, prices declined nearly a c. m less than half an hour s trading. J January, which sold at 8.55 in the forenoon, sank to 8, and other futures suf- | fered in like proportion. The market J was very excited, and exceedingly active. It closed about the lowest, and baiely steady. ~ - The Governments estimate ol a monster crop exceeds by 900.000 bales the larg-

est previous record. Such a crop, in view of the weekly crop and weather bulletins during September and October, cannot be explained until next Monday’s detailed Government reports on the yield of lint cotton per acre in the various States are issued. Liverpool and the South had overnight placed heavy selling orders, provided the estimate exceeded 11,750,000 bales. To-day's trading is estimated at 600,000 bales, and there Avas subsequently heavy trading on the kerb. Many brokers had orders still unexecuted after the official close. The quotations of these unofficial transactions, so far as could be learned, ranged within 3 points of the official closing price. On the New Orle&ns Cotton Market there was a heavy slump of 43 to 53 points. In anticipation of excitement, the galleries were filled with women, ana upon the floor were many excited country bankers, who had been making loans on the basis of cotton at Bc. and above. The fact that the ginners had indicated a bearish tendency saved the market i rom a heavier stump.