Cotton futures edged higher, finding support from continued tight warehouse
stocks and worries over heat stress in parts of the Southeast.

Nearby October cotton added 0.20 cent, or 0.24%, to settle at 84.40 cents a
pound. Most-active December rose 0.17 cent, or 0.21%, to settle at 80.23 cents
a pound.

Follow-through buying from recent gains supported cotton along with
hot-weather concerns.

Crop worries are surfacing as heat stresses cotton in Georgia, Virginia and
northern North Carolina, said Mike Stevens, independent cotton broker and
analyst based in Mandeville, La.

Cotton production out of top-grower Texas, while still large, is beginning to
concern experts as leaves begin to yellow in the main western part of the
state, he said.

December cotton, after spiking to a high of 81.78 cents Thursday, remains
technically overbought and likely due for a correction down to 77 or 76 cents a
pound, a broker said.

Cotton's gains were held in check by a mixed trade in Chicago grains and a
7.6% tumble in wheat futures. Cotton competes with grains and soybeans for
planted acres.

Traders are looking toward Thursday's crop production report from the U.S.
Agriculture Department--the first survey-based estimate of the current crop.
The USDA currently estimates 2010 U.S. output up 36% from 2009 levels, though
strong global demand is expected to quickly use up those supplies.

ICE daily cotton stocks fell by 9,123 500-pound bales to total 30,440 bales.
The U.S. Agriculture Department said that 8,673 bales had been decertified.

Cotton stocks in ICE-approved warehouses have plunged more than 90% this year
as the U.S. shipped more cotton to supply the world's growing appetite for
textile production.

Open interest rose 6,980 to total 185,927 contracts, ICE reported.

Futures volume is pegged at 11,484 contracts, with 2,281 calls and 2,362 put
options traded.

ICE Close Change Range
Oct 84.40 +20 83.65-84.62
Dec 80.23 +17 79.45-80.71
Mar 78.81 +81 77.80-78.85