NEW YORK (Dow Jones)--Cotton futures prices slid Thursday as the market
consolidated from a rally to two-year highs while the strong dollar pulled
commodity prices lower.

Most-active May cotton settled down 115 points, or 1.4%, at 81.82 cents a
pound.

Cotton prices are trading near their highest levels since March 2008 amid a
16.6% rally in the last month. Expectations for continued strong demand and
tighter world cotton supplies have sparked buying since Feb. 5. May futures hit
recent highs at 84.60 on March 1, and have since turned sideways.

The market "had such a dynamic move that it's just cleaning things up a
little bit," said Joe Carney, analyst at Harvest Marketing Group in Memphis.

Cotton futures are overripe for a correction lower, said Mike Stevens, an
independent cotton analyst in Mandeville, La. May futures could ease back
toward 78-80 cents a pound, Stevens said.

Bullish supply and demand outlooks are largely factored into prices, Stevens
said.

"Lousy" weekly cotton sales data released Thursday gave the market little to
move on, Carney said.

U.S. cotton sales in the week to Feb. 25 increased to 147,100 running bales,
but weren't nearly at the level of 500,000-bale highs seen in past months.
However, net Upland cotton exports reached a marketing year high in the same
timeframe. Analysts said high prices are leaving mills on the sidelines of the
market, waiting for lower levels or looking in other countries to purchase
cotton.

Cotton traders are looking ahead to the U.S. Department of Agriculture's
March supply and demand report, scheduled for Wednesday, for more cues on the
fundamental situation.

Analysts said selling may have spilled over into cotton from broad-based
commodities weakness. Traders sold commodities as the U.S. dollar climbed on
better-than-expected U.S. jobs data and jitters about euro-zone fiscal
struggles. Traders sell commodities when the strong greenback makes futures
more costly in other currencies.

ICE daily cotton stocks increased by 15,807 500-pound bales Wednesday to
total 600,988 bales with 69,355 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 1,485 positions Wednesday to total 181,662,
according to the exchange.

Volume was estimated 10,242 lots. In options, approximately 8,968 calls and
1,443 puts traded, according to exchange data.

Close Change Range
Mar 82.12 -107 pts 82.12-82.85
May 81.82 -115 pts 81.53-82.83
Dec 74.69 - 38 pts 74.40-75.25