NEW YORK, Jan 31 (Reuters) - Cotton futures ended
lower on Tuesday for a second session as easing supply worries
and a dollar rise amid economic worries prompted investors to
sell.

Cotton ended up nearly 2 percent January for its second
consecutive monthly gain, as better sentiment in the commodity
complex lifted cotton after a 10 percent drop in November.

Benchmark March cotton on ICE Futures U.S. eased 0.9
cents at 93.25 cents per lb, in a range between 93.11 to 95.29
cents.

'Carrying charges have increased in the cotton market. This
indicates that there is enough cotton to satisfy demand and the
premium for prompt delivery is waning, signaling lower prices
ahead,' said John Flanagan of Flanagan Trading Corp. in North
Carolina.

Carry charges refer to the cost of storing the commodity.
Flanagan said carrying charges have risen since Monday even
though cotton prices fell.

Selling was heavy. Volume in the March contract exceeded
30,000 lots, doubled its 30-day average.

The dollar rose against the euro on worries about Greek debt
restructuring. Other commodities measured by the

Reuters/Jefferies CRB index also fell.

The market now looks forward to next Thursday's U.S.
Department of Agriculture monthly cotton supply and demand
report. And next Friday, U.S. industry group National Cotton
Council will issue its annual survey of potential U.S. cotton
plantings in 2012.

Open interest, an indicator of market liquidity, rose to
168,169 lots as of Monday versus 167,490 lots on Friday, ICE
Futures U.S. data showed.

Monday's volume stood at 25,075 lots, off Friday's tally of
13,567 lots, exchange data showed.