Feb 26 (Reuters) - ICE cotton futures shed more than 1 percent on Tuesday, weighed down by fund selling, while investors look for progress in trade negotiations between the United States and China.

* The most active cotton contract on ICE Futures U.S., the May contract , settled down 1.08 cent, or 1.5 percent, at 72.02 cents per lb.

* The contract traded within a range of 71.91 and 73.04 cents per lb.

* "It was pretty much funds doing the selling here and they (funds) were selling because the market couldn't penetrate 75 (cents) real well," said Jack Scoville, vice president at Price Futures Group in Chicago, adding "part of it also came from spillover from the grains market".

* U.S. corn, soybeans futures fell on Tuesday, while wheat futures slid to its lowest in 10 months on supply pressure. * President Donald Trump on Monday said he was optimistic that a final trade deal could be reached with China and that he would hold a summit to sign any pact, but cautioned an agreement may still not happen.

* "Market is cautiously optimistic but we don't know anything really except that they saying it's going on really well," Scoville said. * Total futures market volume rose by 1,808 to 21,170 lots.

Data showed total open interest fell 688 to 218,417 contracts in the previous session.

* Certificated cotton stocks <CERT-COT-STX> deliverable as of Feb. 25 totaled 127,974 480-lb bales, unchanged from 127,974 in the previous session.

(Reporting by Brijesh Patel in Bengaluru Editing by Sonya Hepinstall)