NEW YORK, Sept 20 (Reuters) - Cotton futures ended slightly
lower Tuesday on follow-through investor sales although trade
and possible mill buying pruned losses in fiber contracts, with
economic fears hanging like a cloud over the market, brokers
said.

The key December cotton contract on ICE Futures U.S.
slipped 0.11 cent to end at $1.0541 a lb, trading from $1.0386
to $1.073.

On Monday, the contract sank the 5.00-cent limit to close
at $1.0552.

Total volume traded on Tuesday hit almost 12,000 lots, less
than 2 percent over the 30-day norm, preliminary Thomson
Reuters data showed.

'We've been caught up in a downdraft' of weak outside
markets, said Keith Brown, president of commodity firm Keith
Brown and Co. in Moultrie, Georgia.

He said many in the trade are still fearful that cotton
futures will suffer from global market turmoil, especially
since it would affect cotton demand.

The market will turn its attention to the U.S. Agriculture
Department's weekly export sales report to see if there are any
further cancellations of U.S. cotton sales given the weak
economic environment.

The December contract has been trapped between $1.09 and
$1.15 for a week or so, but finally broke down Monday during
the severe sell-off in world stock markets.

The close under $1.09 enabled the December contract to
mount a probe of $1.03 and could possibly lead to a stab at
$1.01 in the coming sessions, traders said. The $1.01 level is
the low end of a trading band stretching back almost two
months.

Total volume traded Monday in the cotton market reached
21,690 lots, almost triple the previous session's count at
7,519 lots, ICE Futures U.S. data showed.

Open interest stood at 151,586 lots as of Sept. 19, versus
the prior tally of 155,895 lots, the exchange said.