Feb 01, 2012 (Dow Jones Commodities News via Comtex) -- 9:56 (Dow Jones) Cotton futures could be on the verge of a steep drop, according to Flanagan Trading Corp President John Flanagan. "Prices are likely to head lower, [to] the 87-cent level," he said. "The carry charges are being rapidly rebuilt in the market," meaning that buyers are paying a premium for their cotton to be held for later delivery. It's a sign that the market is well-supplied. ICE cotton for March delivery up 0.6% at 93.83c/lb, and contract for May delivery up 0.9% at 95.31c/lb.