Only the better grades of cotton are deliverable on future contracts so
that probably one of the main causes of the keen demand for October
contracts was the apprehension that the present crop will not only be
the smallest for many years but that it will also be of low grade, as is
indicated by reports from some sections.
During the remainder of the week prices eased off somewhat under heavy
hedge selling and liquidation by long interests, but indications were
that the demand for future contracts, as well as for spot cotton during
the entire week, was fully equal to the offerings. The end of the week
found prices higher than those prevailing at the close of the previous
week except for the prices for the more distant months, which were a few
points lower.
The average price of Middling as determined from the quotations of the
10 designated spot markets closed at 20.71¢ per lb. on Oct. 1, compared
with 19.92¢ at the close of the previous week and 23.11¢ for the
corresponding day in 1920.
Fluctuations in prices for futures ranged from a decline of 27 points
for July future contracts at New York to an advance of 88 points for
October futures in the same market. October futures on the New Orleans
Cotton Exchange advanced 70 points. October future contracts on the
Liverpool Cotton Association closed at 14.68d. per lb. on Sept. 30,
compared with 14.16d. at the close of the previous week and 17.23d. for
the corresponding day in 1920.