NEW YORK (Dow Jones)--Cotton futures prices slipped nearly 0.5% Monday as the
market consolidated off two-year highs in anticipation of a fresh batch of
government supply and demand estimates.

ICE Futures U.S. cotton for May delivery settled down 39 points at 82.04
cents a pound. The contract has lost 3% since hitting 84.60 one week ago, the
highest prices for cotton since March 2008. Prices are still 20.24% higher
since Feb. 5 as traders bought on ideas that recovering world demand would
outstrip supply.

Analysts said retailers are refilling their textile inventories ahead of an
expected economic recovery, which will kick in consumer purchases of textiles.

Cotton prices were helped in the recent rally from bullish U.S. Department of
Agriculture supply and demand report. Analysts said the market is awaiting the
next report on Wednesday for another push.

Cotton futures "are just moving in pre-report consolidation," said John
Flanagan, president of Flanagan Trading Corp. in Fuquay-Varina, N.C.

The USDA is likely to lower its outlooks for the domestic cotton production
in the ongoing 2009-10 crop year as ginnings data is lower than projections,
according to analysts surveyed by Dow Jones Newswires. However, the USDA may
marginally increase outlooks for U.S. exports as world supplies are forecast
lower, analysts said.

Analysts have said that cotton is due for more losses to steady the market
after its recent climb.

May cotton could correct back to 78 cents a pound, said Tom Mikulski, senior
market strategist at Lind-Waldock in Chicago.

Tuesday is the last trading day for May 2010 cotton.

ICE daily cotton stocks increased by 12,486 500-pound bales Friday to total
630,906 bales with 54,296 bales awaiting review, according to exchange data.

ICE cotton open interest–-the number of active positions left at the
end of the session--increased by 2,131 positions Friday to total 185,569,
according to the exchange.

Volume was estimated 9,648 lots. In options, approximately 3,644 calls and
4,906 puts traded, according to exchange data.

Close Change Range
Mar 82.15 -38 pts 82.15-82.75
May 82.04 -39 pts 81.34-82.44
Dec 75.27 +18 pts 74.05-75.30