NEW YORK (Dow Jones)--ICE Futures U.S. cotton bounced from 16-week lows
Tuesday with an added lift from the weaker dollar and commodities gains.

March cotton settled up 104 points, or 1.5%, at 69.26 cents a pound.

Cotton dipped to 68.18 in early dealings, the weakest point for the March
contract since Oct. 13 and just 2 points beyond Monday's low. Prices rose for
much of the session and finished at highs for the day. Additional support came
as the greenback eased for the second consecutive session as concerns about
euro-zone sovereign debt waned. Traders typically buy commodities when the
softer dollar makes them less expensive in other currencies. Chicago Board of
Trade grains, crude oil, metals and most softs were stronger Tuesday.

Cotton futures may have found a bottom after nearly five weeks of losses,
according to a market letter from Varner Brothers, a brokerage in Cleveland,
Miss.

Cotton backed off of an extended rally in late 2009 built on tighter world
supplies and growing demand. The International Cotton Advisory Committee said
it expects world cotton mill use to come in 7.25% higher in the ongoing 2009-10
marketing year as the global economic recovery jumpstarts textile consumption.

After a month of losses, cotton futures are likely to advance, analysts said.
The market will keep close tabs on commodities and the dollar for direction,
analysts said.

"Cotton prices are well oversold and are likely to chop higher now, rather
than lower," said John Flanagan, president of Flanagan Trading Corp. in
Fuquay-Varina, N.C.

ICE daily cotton stocks increased by 2,476 500-pound bales Monday to total
480,819 bales with 52,582 bales awaiting review and 1,144 decertification
orders, according to exchange data.

ICE cotton open interest -– the number of active positions left at the
end of the session -- decreased by 348 positions Monday to total 170,830,
according to the exchange.

Volume was estimated 17,717 lots. In options, approximately 4,452 calls and
4,208 puts traded, according to exchange data.

Close Change Range
Mar 69.26 +104 pts 68.18-69.46
May 70.72 + 86 pts 69.86-70.89
Dec 70.96 + 77 pts 70.11-71.00