NEW YORK, Oct 27 (Reuters) - Cotton futures ended on
Thursday up by the daily 4.00 cent limit at a six-week high as
the market rose for the fifth straight session, sparked mainly
by news European leaders have forged a deal to resolve the debt
crisis, analysts said.

The market was also inspired by strong U.S. cotton export
sales reported by the U.S. Agriculture Department's weekly
export sales data and news that Pakistan has
cut its cotton output by nearly 1 million bales.

'We've got all the ingredients (for an advance),' said
Sharon Johnson, senior cotton analyst at commodity brokerage
Penson Futures in Atlanta.

The key December cotton contract on ICE Futures U.S.
went up the 4.00 cent daily to finish at $1.0432 per lb, with
the session low at 99.91 cents. It was the highest settlement
for spot cotton in six weeks.

Total volume traded Thursday hit over 23,400 lots, some
two-thirds over the 30-day norm, preliminary Thomson Reuters
data showed.

The market has rebounded strongly since falling last
Thursday to end at 96.86 cents in the lowest settlement for the
spot contract since September 2010.

The fall triggered buying by No. 1 consumer China, which
notched total upland cotton sales of 396,700 running bales
(RBs, 500-lbs each).

Cotton's surge was also stoked by the impact of the EU deal
on world stocks, which surged as the euro jumped to a 7-week
high.

The rally also spilled over into the crude and grains
markets.

Johnson said cotton raced past the 50-day moving average
and is now taking aim at 100-day MA at $114.17 as the next
target for technical players.

Open interest in cotton, usually taken as an indicator of
investor exposure in cotton, stood at 160,306 lots as of Oct
26, its highest level since June 9, exchange data showed.

Total volume traded Thursday in the cotton market reached
13,764 lots, down from the previous tally of 25,631 lots, the
heaviest amount traded since Sept 8, ICE futures U.S. data
reported.