ICE cotton futures settled marginally lower on Tuesday on increased production of natural fiber with federal data showing strong progress in the US cotton harvest.

Sixty-three per cent of cotton crops were harvested in the US by the week ended May 28, up from 52 per cent in the previous week. The crop is getting planted very nicely in the northern hemisphere without any major disruptions.

The December cotton contract on ICE futures US settled down 0.04 cent, or 0.1 per cent, at 72.75 cents per lb. It traded within a range of 72.33 and 72.77 cents a lb.

Meanwhile, the July cotton contract on ICE Futures US touched a two week low of 76.90 cents per lb. July prices have fallen about 12 per cent since touching a near three-year peak of 87.18 cents mid-May.

Ever since the July market peaked on May 15, open interest has been declining, and so have the prices. Total futures market volume rose by 3,674 to 22,066 lots. Data showed total open interest fell to 241,984 contracts in the previous session.

Elsewhere, speculators cut their bullish bet in cotton by 8,532 contracts to 97,141 contracts in the week ended May 23.

Futures contracts are subject to a daily price limit that can range from three to seven cents per pound.