July 10 (Reuters) - ICE cotton futures slipped nearly 2 percent on Monday in the biggest one-day percentage drop in over two weeks as speculators kept selling their net long positions on expectations of higher new crop.

The December cotton contract on ICE Futures settled down 1.3 cents, or 1.90 percent, at 67.29 cents per lb, to register its biggest percentage drop since June 22. It traded within a range of 67.21 and 68.77 cents a lb.

"There has been some fund selling. It does seem that some of the funds have continued to get rid of their already pretty small net long positions," said Gabriel Crivorot, analyst at Societe Generale in New York.

Speculators cut a bullish stance in cotton by 5,721 lots to 25,413 lots in the week to July 3, U.S. Commodity Futures Trading Commission data showed on Friday. That was the smallest net long position in the commodity since May 2016.

The U.S. Department of Agriculture's monthly World Agricultural Supply and Demand Estimates report is due on Wednesday.

"The USDA report is coming up. ... Analysts expect slightly higher stocks in the rest of the world on higher production mainly due to good weather we've had, particularly in India, where the monsoon is hitting a much larger cotton area than it hit last year," Crivorot said. The seasonal monsoon rains have covered most of India and the amount of precipitation so far is within expectations, the head of the country's weather office said on Monday. Elsewhere, Egypt aims to double production of its most famous export, the silky soft cotton once known as "white gold," after a period of slumping output, an Agriculture Ministry spokesman said on Saturday.

Total futures market volume rose by 3,906 to 22,174 lots. Data showed total open interest gained 1,191 to 210,391 contracts in the previous session. Certificated cotton stocks deliverable as of July 7 totaled 106,137 480-lb bales, down from 109,167 in the previous session.

(Reporting by Swati Verma in Bengaluru; Editing by Leslie Adler)