NEW YORK, June 28 (Reuters) - U.S. cotton futures ended
higher on Tuesday, as a weak dollar and accelerated
cross-commodity rally helped fiber values overcome initial
selling pressures tied to weaker overseas markets.

The key December cotton contract on ICE Futures U.S.
eked out a 0.02-cent gain to settle at $1.2201 per lb, after
dealing from $1.1977 to $1.2328.

Cotton bounced back from earlier downside pressure linked
to China's cotton futures market, where the Zhengzhou Commodity
Exchange January cotton futures fell sharply for the
second straight day.

Positive momentum built from there, with a generally upbeat
tone in most other commodity markets feeding the gains. As a
result, the Reuters-Jefferies CRB Index, a global
commodities benchmark, posted its biggest one-day gain in six
weeks as optimism for a resolution to Greece's debt crisis
boosted investors' risk appetite.

Despite the positive reversal, total market volume in
cotton futures stood at a paltry 6,000 lots, more than 70
percent below the 30-day norm, Thomson Reuters preliminary data
showed.

The spot July cotton contract fell 1.09 cents to
finish at $1.6091 per lb.

ICE Futures U.S. will increase its ability to
adjust trade prices in softs futures, the latest in a series of
changes it has made to deal with volatility in its coffee,
cocoa, cotton and sugar markets.

Market participants will now look forward to the U.S.
Agriculture Department's annual planted acreage report on
Thursday, which will show how much was planted to major row
crops in the United States.

A Reuters survey of brokers and analysts showed they expect
2011 cotton plantings to average 13.26 million acres (5.366
million hectares), up from the U.S. Department of Agriculture's
(USDA) March projection of 12.566 million acres.

Open interest in the ICE futures cotton market amounted to
133,962 lots as of June 27, ICE Futures U.S. data showed.