NEW YORK (Dow Jones)--Cotton prices slid to 15-week lows Friday as
broad-based sales by speculative funds pounded most markets and exacerbated
cotton's weaker trend.

Nearby cotton for July delivery settled 1.15 cent, or 0.8%, to 77.06 cents a
pound on ICE Futures U.S. The most-active December contract closed 1.12 cent,
or 0.8%, lower at 75.28.

Selling by speculators, such as banks and hedge funds, hammered most
agricultural commodities, metals and energy markets, as well as equities
Friday. The bearish sentiment was triggered by renewed European debt fears,
this time involving Hungary, and news of lower-than-expected new payroll
positions created in May.

"The disappointing jobs report was a big-time downer for cotton bulls
counting on an economic turnaround," said Mike Stevens, an independent cotton
analyst and broker based in Mandeville, La.

Cotton continued to slide on sales sparked by bearish signals on technical
charts. July cotton lost 2.5% this week as speculators exited positions to
avoid taking part in the contract's physical delivery ahead of July 24 first
notice day. Losses piled up and those positions did not reappear in the
December contract, indicating those speculators left the market.

Macroeconomic weakness has bearish implications for the cotton demand that
has lifted prices since textile demand began to recover roughly a year ago.

Though cotton prices have been weaker in recent months, weekly U.S. cotton
export sales data continue to come in strong. Traders are on the lookout for
buying from mills that indicates ICE warehouse stocks are attractively priced.

ICE daily cotton stocks decreased by 45,210 500-pound bales Thursday to total
1.04 million with 22,526 bales awaiting review and 50,144 decertification
orders, according to exchange data.

ICE cotton open interest--the number of active positions left at the end of
the session--decreased by 1,368 positions Thursday to total 179,089, according
to the exchange.

Volume was estimated 29,726 lots. In options, approximately 4,824 calls and
5,385 puts traded on the floor, according to exchange data.

Close Change Range
Jly 77.06 -1.15 77.06-76.56
Oct 74.69 -1.17 74.20-76.00
Dec 75.28 -1.12 74.77-76.68