* Certified cotton stocks reach 1-month high

* Possibility of light crop damage seen overplayed

Nov 1 (Reuters) - U.S. cotton futures trading on ICE Futures closed higher on Thursday, correcting upward as the market approached technically oversold territory after dropping to a one-month low on pressure from rising certified stocks.

The most-actively traded December cotton contract on ICE Futures U.S. closed up 0.14 cent, or 0.2 percent, at 70.21 cents per lb.

Total volume reached just over 29,000 lots, up roughly 20 percent from the 30-day average, preliminary Thomson Reuters data showed.

The market initially moved lower, extending losses from the previous two sessions as ICE certified cotton stocks rose for the seventh straight day. The certified stocks reached a one-month high at 11,603 bales as of Oct. 31, ICE data showed.

"There may have been a miniscule (amount) of damage in North Carolina. I think it's overplayed," said Sterling Smith, Futures specialist for Citigroup in Chicago.

Smith was referring to possible crop damage due to Hurricane Sandy which recently thundered along the U.S. East Coast, including North Carolina, before wreaking havoc on New York City and New Jersey.

Crop damage has the potential to push the futures market higher.