NEW YORK (Dow Jones)--Cotton prices were mixed Wednesday in sideways
consolidation dominated by spread trading and profit taking.

Nearby May cotton on ICE Futures U.S. May contract ended 0.58 cent or 0.7%
higher at 83.63 cents a pound. Most-active July cotton settled 0.30 cent or
0.4% lower at 84.90 cents.

Cotton prices hit their highest levels in two years Wednesday on speculation
over how much cotton will be bought by spinning mills in the coming months as
world textile demand rebounds with the economy.

World cotton production is expected to fall short of consumption by 15% in
the season that ends July 31, U.S. Department of Agriculture forecasts show.
Analysts expect U.S. cotton to be a major source of mill buying as the season
draws to a close. The U.S. is the world's top cotton exporter. India enacted an
export ban last week in order to control rising prices.

Speculative buying supported prices through much of Wednesday's session, said
Keith Brown, principal at Keith Brown & Co. in Moultrie, Ga.

July futures slipped in late trade, likely on profit-taking, said Ron Lawson,
managing director at LOGIC Investment Services in Sonoma, Calif. The contract
has support at the 84.50 level, Lawson said.

Spread trading between July and December also accounted for part of
Wednesday's volume, Lawson noted. The difference between the two represents
currently available stocks in July, which are at a premium. Expectations for a
larger U.S. crop, which will be available by December, leave that contract at a
discount.

Traders will look to demand cues in Thursday's weekly cotton export sales
report--released at 8:30 a.m. EDT by the USDA.

ICE daily cotton stocks increased by 8,572 500-pound bales Tuesday to total
1.01 million bales with 18,569 bales awaiting review, according to exchange
data.

ICE cotton open interest--the number of active positions left at the end of
the session--increased by 854 positions Tuesday to total 189,849, according to
the exchange.

Volume through 2:30 p.m. EDT was estimated 11,857 lots. In options,
approximately 8,538 calls and 6,717 puts traded on the floor through the same
timeframe, according to exchange data.

Close Change Range
May 83.63 +58 pts 83.21-84.20
Jly 84.90 -30 pts 84.41-86.00
Dec 77.49 +14 pts 77.21-77.74