* Growers holding out for 80 cents/lb
* Volume well below 30-day and 250-day averages
* Speculators cut bullish bets - CFTC data

NEW YORK, Aug 17 (Reuters) - Cotton prices rose almost 1
percent on Friday as the market continued to recover from the
recent sell-off after the U.S. government's bearish
supply-and-demand report.
The recent see-saw trading continued on light volumes as the
market waited for news from India, the world's No. 2 cotton
producer, where planting has been hampered by weak monsoon
rains.
Traders also hope for signs that textile mills in China, the
world's largest consumer, are preparing for fresh purchases.
The benchmark December cotton contract on ICE Futures
U.S. rose 0.97 percent to 73.3 cents per lb. With just under
9,500 contracts traded, volumes were half the 250-day average
and a third below the 30-day average.
Strength in grains also aided fibers.
Even after rising more than 1 percent on the week, the
market was still vulnerable. The closely watched 14-day Relative
Strength Index (RSI) remained around 38, according to Reuters
data. A reading below 30 would signal an oversold position.
Prices slumped 7 percent from as high as 77 cents in the
wake of the U.S. government's latest supply-and-demand report
last week.
The market remained on weather watch after heavier monsoon
rains in some areas of India, bringing relief to farmers,
although planting is still behind last year due to overall
weakness in the seasonal rains.
Texas, the largest growing area in the United States,
received some rain on Friday, with more forecast over the
weekend to help crops parched after a month-long dry spell.
But producers are holding out for higher prices if the lack
of rain in the state damages crops. Any gains could likely to
be short-lived though given the record surplus weighing on the
market, market participants said.
"If there's no rain in India or Texas, it could go to 80
cents. Farmers are looking for a chance to do some pricing,"
said a U.S. broker.
Speculative investors, such as hedge funds, cut their
bullish bets on fiber prices in the week to Aug. 14, U.S.
Commodity Futures Trading Commission (CFTC) data showed on
Friday.
The drop in the net long reflects the poor sentiment in the
wake of the monthly government report a week ago.