* December contract builds on gains, may crawl higher
* Falling dollar, robust grains prop up cotton

NEW YORK, July 16 (Reuters) - Cotton futures settled higher
Monday on speculative buying sparked by the fall of the dollar
to a one-month low and a sizzling rally in the grains complex,
dealers said.
The benchmark December cotton contract on ICE Futures
U.S. increased 0.64 cent or nearly 1 percent to finish at 73.30
cents per lb, dealing from 72.10 to 73.40 cents.
It was the highest close for the second-position cotton
contract since June 19, Thomson Reuters data showed.
Volume traded Monday stood near 13,200 lots, almost
two-thirds under the 30-day norm, Thomson Reuters data showed.
Mike Stevens, an independent analyst in Mandeville,
Louisiana, said the December contract's ability to finish above
72.75 cents the past two sessions will likely lead to a "test
(of) the 75 cents" area.
He said strength in the grains complex would serve as a
source of support for cotton futures. The market will also be
watching for any decertifications from exchange cotton stocks.
Cotton was buoyed by the fall in the dollar to a month low
versus the yen on expectations the Federal Reserve could launch
further steps to boost the U.S. economy.
U.S. corn and soybean futures jumped to contract highs to
extend the grain complex's biggest gains in over 3-1/2 months.

Traders said the focus on macroeconomic factors will
continue to be a feature in market dealings this week.
Open interest, an indicator of investor interest, fell for
the first time in six sessions to 170,643 lots as of July 13,
the exchange said.
Volume traded on Friday amounted to 23,013 lots, according
to ICE Futures data.