NEW YORK (Dow Jones)--Cotton prices drifted lower Tuesday, as the rising
dollar and uncertain economic outlook weighed on the market.

Nearby cotton for July delivery settled 0.51 cent, or 0.6%, lower at 80.53
cents a pound.

The stronger dollar pressured cotton prices amid lingering unease about
Europe's plan to stem Greece's sovereign debt woes. A firm greenback makes
dollar-denominated contracts more expensive in other currencies. Most softs
markets settled lower Tuesday, and the CRB Index slid as well.

Analysts said cotton traders are now focused on outside markets for cues on
the economy, as well as crop progress.

Some 34% of the 2010 U.S. cotton crop was planted in the week ended May 9, up
from 26% the previous week and on par with the average for this time of year.

Much of the upcoming 2010-11 cotton production depends on how weather
conditions coincide with crop development, said Gary Raines, textiles and fiber
analyst at FCStone in Nashville.

Flooding in Tennessee has made cotton plantings "a major concern," according
to a newsletter from the state's extension service. Planting may be limited in
river and creek bottoms due to ample rains received in the last week. Acres
planted in April need to be checked for stand quality and replanting decisions
should be made quickly, the extension service said.

The U.S. Department of Agriculture released its first outlook for the 2010-11
cotton crop Tuesday. The data were largely in line with analysts expectations.

"The report this morning was not a game-changer," one cotton analyst said.

Estimates for both U.S. and world cotton production rose from forecasts for
the previous season. Higher cotton prices encouraged more plantings worldwide,
as did moist soil conditions in the U.S. The world cotton consumption outlook
increased for 2010-11, in line with projected increases in U.S. exports.
Rebounding world economic growth and textile consumption are expected to carry
over from 2009-10. Cotton ending stocks, or available supplies, for 2010-11
were trimmed in both the U.S. and world forecasts.

Analysts said July cotton prices have support at 80 cents a pound.

Volume for the session was estimated at 16,116 lots, ICE data show. On the
floor, 4,422 call options traded along with 1,382 puts.

ICE cotton open interest--the number of active contracts at the end of the
session--increased by 1,043 lots Monday to total 176,498 lots.

ICE daily cotton stocks increased to 1.054 500-pound million bales Monday
with 44,128 awaiting review.

Close Change Range
Jly 80.53 -0.51 80.50-81.90
Oct 77.80 -1.34 77.65-79.29
Dec 76.30 -0.10 76.05-76.67