NEW YORK (Dow Jones)--Cotton prices bounced Friday as textile mills bought
amid tight supplies, and bullish sentiment on commodities added support.

Nearby cotton for May delivery on ICE Futures U.S. settled 1.11 cents, or
1.4%, higher at 82.76 cents a pound. Most-active July cotton settled 0.83 cent,
or 1%, higher at 84.13 cents a pound.

Cotton prices found support after touching a relative low at 83 cents basis
July on Thursday. Traders covered shorts, or bought back previously sold
positions to close out bearish positions, said one Chicago-based softs analyst.

The contract had traded in a range of 84 to 87 cents in the last two weeks as
uncertainty about available supplies supported prices. World cotton demand is
expected to surpass supply by 15% in the year ending July 31, according to the
U.S. Department of Agriculture.

Cotton also gained Friday as textile mills bought at these relatively low
prices, said Sharon Johnson, a senior cotton analyst at First Capitol Group in
Atlanta.

In addition, broad-based gains in commodities lifted cocoa prices. A weaker
dollar supported markets in most metals and crude, which tend to see investor
interest when a soft dollar makes them less expensive in other currencies.
Expectations that there will be more clarity about a debt relief package for
Greece over the weekend weighed on the dollar.

Traders also sold July contracts and bought December futures at a discount,
said one cotton broker/analyst. July contracts are higher-priced than December
contracts because fresh supply from the autumn 2010 U.S. cotton harvest will be
available later in the year.

ICE daily cotton stocks increased by 3,879 500-pound bales Thursday to 1.018
million, with 26,053 bales awaiting review and 17 decertification orders,
according to exchange data.

ICE cotton open interest--the number of active positions left at the end of
the session--decreased by 1,332 positions Thursday to 190,015, according to the
exchange.

Volume was estimated 8,959 lots. In options, approximately 2,779 calls and
1,332 puts traded on the floor, according to exchange data.

Close Change Range
May 82.76 +1.11c 82.40-82.76
Jly 84.13 +0.83c 83.40-84.43
Dec 77.97 +0.40c 77.50-77.98