March 22 Cotton futures rose for the second
straight session on Tuesday on perceptions of tight supplies, as
traders continued to cover bearish bets amid an overall uptick
in the broad commodities sector.

The front month May contract on ICE Futures U.S. has
been trading higher than the July and December contracts for
just about a month. A backwardation, with nearby prices at a
premium to those further out, is often seen as a sign of tight
nearby supplies.

"It is a sold out market," said Peter Egli, director of risk
management at British merchant Plexus Cotton.

* The front-month May contract on ICE Futures U.S.
settled up 0.2 cent, or 0.34 percent, at 58.37 cents per lb,
after touching a high of 58.44 cents.

* The dollar index was up 0.37 percent. The Thomson
Reuters CoreCommodity CRB Index, which tracks 19
commodities, rose 0.43 percent.

(Reporting by Arpan Varghese in Bengaluru; Editing by Meredith
Mazzilli)