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Cotton futures fall

NEW YORK: NYCE cotton futures were trading lower at midday on light profit taking as dealings remained lackluster ahead of the first notice day for the May contract on Wednesday, floor sources said.

"We made new highs yesterday so people are taking profits," one trader said in reference to lifetime highs made in the December and March contracts.

He said forecasts for rain in West Texas were adding pressure to prices in the new crop.

But delayed plantings, a drought in West Texas and lost acreage to competing crops will remain supportive to prices in the new crop, market sources said.

"Talk of more and more cotton acreage going to corn will support the new crop," said Judith Ganes, an analyst with Merrill Lynch.

At 1128 EDT, July was off 0.13 cent at 83.70 cents a lb. May was 0.23 cent lower at 83.70 cents. New crop December was 0.12 weaker at 81.80 cents.-Reuter