"It looks steady to about 0.10 (cent) better although there's nothing really out here yet at the moment," an NYCE floor dealer said.

March cotton ended Monday at 60.62 cents a lb, off 0.06 cent, after trading in a narrow 55-point range of 60.85 to 60.30 cents. Back months were 0.23-0.07 cent softer.

Prices were easier due to light trade and speculative sales in subdued market dealings.

"Funds are likely to continue liquidating their short position but will probably not become active unless the market closes above 61.50 (cents), basis March. Active selling on the December contract is likely above 64 cents by growers," a daily report by cotton brokers Flanagan Trading Corp. said. March cotton has recovered slightly since falling at the beginning of last week to a new lifetime low of 57.35 cents and settling at a five-year nadir of 57.37 cents.

Second position May alsolost 0.31 to settle Monday at 61.63 cents and back months were 0.54 cent softer to 0.32 cent firmer. New crop December went up 0.07 to 63.21 cents. Traders said the weekly NYCE spec/hedge report which showed speculative funds with a net short position of 19.2 percent were within market expectations their net short standing would range from 18-20 percent. Last week, it stood at 21.7 percent. Technically, March resistance should be seen at the Thursday and Friday peak of 61.50 cents, and then 62 and 65 cents, dealers said.