Cotton futures rallied on Thursday, rebounding from a three-week low hit the prior session, as traders covered short positions ahead of the holiday after a US government report showed a jump in export sales.

Sales of upland cotton last week totalled 118,200 bales for the 2015/16 season, up 19 percent from the previous week but down 36 percent from the prior four-week average.

March cotton on ICE Futures US settled up 0.89 cent, or 1.42 percent, at 63.66 cents per lb. It traded within a range of 62.73 and 63.94 cents a lb.

The following deals reported: 1200 bales of cotton from Chichawatni sold at Rs 4900, 400 bales from Bahawalpur at Rs 5200, 200 bales from Chistian at the same rate, 400 bales from Faqirwali at Rs 5300, 600 bales from Hasilpur at Rs 5350 and 400 bales from Mianwali at Rs 5500, dealers said.