NEW YORK (Dow Jones)--Cotton prices ended mixed Tuesday as traders sold
nearby July futures in favor of December.

Nearby cotton for July delivery settled 0.18 cent, or 0.2%, lower at 82.07
cents a pound on ICE Futures U.S. December futures ended 0.20 cent, or 0.3%,
higher at 78.15.

Cotton prices have shown limited influence to the macroeconomic uncertainty
that has triggered risk-averse trade for much of May. Cotton prices are
underpinned by U.S. Department of Agriculture estimates that production will
fall short of consumption by 12.5% in the season that ends July 31, followed by
a 5% shortfall in the next year.

"There was continued physical off-take," said Andy Ryan, a risk management
consultant at FCStone in Nashville. "Mills are still buying cotton in Asian
countries, and that produces some buying in the futures market."

However, July prices, supported by current tight supplies, continue to lose
ground to December futures, which indicate expectations for the fall harvest.
Higher prices encouraged producers to plant cotton in the place of alternative
crops like corn and soy.

Planting progress continues to be generally favorable for the U.S. cotton
crop, with 60% planted in the week to May 23, up from 47% last week, U.S.
Department of Agriculture data show.

However, any change in those conditions prompted by unpredictable weather
could boost December cotton prices. The July-December trading relationship is
currently inverted as more risk, and therefore higher prices, typically rests
in back-month contracts.

July cotton futures are likely to hold within the 79-84 cents range, Ryan
said.

ICE daily cotton stocks decreased by 1,050 500-pound bales Monday to total
1.067 million with 37,854 bales awaiting review and 2,992 decertification
orders, according to exchange data.

ICE cotton open interest--the number of active positions left at the end of
the session--increased by 340 positions Monday to total 190,305, according to
the exchange.

Volume was estimated 20,135 lots. In options, approximately 2,512 calls and
3,206 puts traded, according to exchange data.

Close Change Range
Jly 82.07 -0.18 81.15-82.27
Oct 77.53 +0.18 76.67-77.57
Dec 78.15 +0.20 77.01-78.19