NEW YORK (Dow Jones)--Cotton prices rose Tuesday as speculators showed
renewed interest in the market's bullish near-term fundamental outlook.

Nearby cotton for October delivery settled 0.66 cent, or 0.8%, higher at
84.51 cents a pound on ICE Futures U.S. The most actively traded December
contract settled 0.46 cent, or 0.6%, higher at 79.80.

Cotton is trading in the slow summer season, when the market typically
begins to move lower in expectation of an influx of supply from the fall
harvest. However, available world cotton stocks have been worn away as global
textile consumption rebounded with the world economy in the last year.

"It's got a good story of big demand and restricted supply and funds
recognize that," said Andy Ryan, risk management consultant at FCStone in
Nashville, Tenn.

ICE's weekly speculation and hedging report released Monday showed
speculators, like banks and hedge funds, increased their net long position in
ICE cotton to 3.6% in the week ended July 30.

"The spec/hedge pointed out the obvious: Specs have turned bullish once
again," said Mike Stevens, an independent cotton broker and analyst based in
Mandeville, La.

However, the U.S. cotton crop is expected to rise by 50% this season with
the help of favorable weather.

"Any tightness with deliverable stocks or early cotton is reserved to the
December [contract], but by the end of the calendar year, cotton should not
only be easily flowing in the U.S. but overseas as well," said Sharon Johnson,
senior cotton analyst at First Capitol Group in Atlanta.

Sixty-six percent of the developing U.S. cotton crop was rated in
good-to-excellent condition on the week ended Aug. 1, down slightly from 68% in
that conditions the week before, U.S. Department of Agriculture data show. In
the same period, 69% of the crop is setting the bolls that hold the fiber on
cotton plants, up from the 63% average, according to the USDA.

Volume was estimated 14,145 lots. In options, approximately 4,373 calls and
4,589 puts traded, according to exchange data.

ICE daily cotton stocks decreased by 3,220 500-pound bales Monday to total
44,145 with 3,220 decertification orders, according to exchange data.

ICE cotton open interest--the number of active positions left at the end of
the session--increased by 3,305 positions Monday to total 175,756, according to
the exchange.

Close Change Range
Oct 84.51 +0.66 83.09-84.58
Dec 79.80 +0.46 78.66-79.84
Mar 77.99 +0.66 79.64-78.00