NEW YORK, Dec 16 (Reuters) - U.S. cotton futures
finished flat on Friday, after two straight days of price
swings, as investors reacted to developments from outside
markets amid weak fundamentals for the fiber.

Benchmark cotton for March delivery on ICE Futures U.S. settled
at 86.29 cents per lb, unchanged from Thursday.

The contract had risen 1.3 percent in the previous session,
after falling 2.5 percent on Wednesday -- reaching the lowest
traded levels since the middle of August 2010 on spot
continuation charts.

'Cotton's been really swinging this week, with people
reacting to what's happening in other commodities and the global
economy, as there's very little fundamentally to watch in
cotton,' said a trader.

Commodities as a whole ended on Friday with their biggest
weekly decline in two months, although gold and copper rallied
for the day on the back of a weaker dollar and a continued
improved outlook for the U.S. economy versus Europe.

Cotton's fundamental outlook is not being helped by the
latest monthly supply/demand report from the U.S. Agriculture
Department, which forecast world 2011/12 cotton consumption at
111.34 million (480-lb) bales and production far ahead at 123.42
million bales.

Cotton prices began rallying in August 2010 due to tight
supplies and robust demand, eventually hoisting cotton futures
to their highest since the U.S. Civil War in the 19th century.

Prices peaked at $2.27 in March before starting a sharp decline.