ICE cotton futures inched higher on Monday as market participants awaited fresh economic data, with growing expectations of a potential U.S. Federal Reserve rate cut adding support.

* Cotton contracts for March (CTH6) rose 0.36 cent, or 0.6%, at 64.21 cents per lb at 11:24 a.m. ET (1624 GMT).

* "We're going to be moving mostly sideways with support and I would think there will be buyers on breaks and sellers big on rallies and we'll just go sideways until we get more information," said Kansas-based commodity analyst Sid Love.

* "Interest rates ought to come down and that would give us a little bit more of a boost," Love added.

* Generally, the Fed cuts interest rates to stimulate the U.S. economic growth, which in turn can boost demand for textiles such as cotton.

* Currently, traders expect a 77% chance of a rate cut next month, as per the CME FedWatch Tool.

* Data showed on Friday ICE cotton speculators increased their net short position on the commodity by 3,861 contracts to 142,589 in the week to October 7.

* Markets are now looking ahead at the U.S. Department of Agriculture's weekly crop progress report, due later today, along with the delayed export sales data scheduled for release on November 25 and November 28.

* Last week, the USDA showed net sales of upland cotton for the week ending October 2 totaled 199,000 running bales for 2025/26 marketing year and the U.S. made 203,600 running bales of new sales.

* In other grain markets, Chicago soybean fell, retreating from last week's 17-month high, as traders waited for signs of more Chinese buying of U.S. beans. Wheat and corn fell amid abundant supplies.