* December prices edge higher, first gain in 10 sessions
* Prices hover above Friday's two-year lows
* Traders expect Thursday's U.S. weekly export data to be
NEW YORK, July 14 ICE cotton rose on Monday,
stemming a nine-day rout as a speculator selling spree dried up
and mills spied buying opportunities as prices hovered near last
week's two-year lows.
The benchmark December cotton contract on ICE Futures U.S.
closed up 0.18 cent, or 0.3 percent, at 68.30 cents a lb.
Until Monday, the December contract had fallen every
day for two weeks as speculators switched to a bearish stance on
expectations for a bumper U.S. crop and ballooning inventories.
Traders now expect weekly U.S. government export data due on
Thursday will show that low prices are kindling demand.
"We got so cheap that mills have been buying. That's a
friendly factor," said Sharon Johnson, a cotton specialist with
KCG Futures in Georgia.
The second-month has slumped 7 percent so far in July
and sank as low as 67.10 cents a lb on Friday, the second-month
contract's weakest since June 2012.
Prices hit that low after the U.S. government forecast world
inventories would reach a record 105.7 million 480-lb bales and
that U.S. inventories will reach a six-year high of 5.2 million
bales by the end of July 2015.
Prices have since pared losses.
"Could that report have been any more bearish? I don't think
so. But a lot of it wasn't that much of a surprise," Johnson
said of Friday's report.
(Reporting by Chris Prentice; Editing by Tom Brown)