NEW YORK, Aug 23: Cotton futures settled with modest declines on Friday, pulled down with other commodity markets as the dollar strengthened, but brokers said future supply concerns and recent strong price action should keep prices well supported.

The key December cotton contract closed down 21 cents at 69.63 cents a lb.

The contract set a range between 68.91 and 70.19 cents a lb, but held below the one-week high at 70.28 set Thursday.

Cotton’s rally off of an 11-1/2 month low at 66.79 a lb provided definitive near-term direction - traders said.

Physical buyers found value from that low up to current levels, and should continue to define support - traders.

Prices may consolidate around current levels, and could build to even higher levels - brokers.

If cotton can break through that resistance, it could rally to challenge recent highs at 75 cents basis December. - John Flanagan of Flanagan Trading Corp.

Some analysts expect the cut in cotton plantings to keep a floor under prices over the long-term.—Reuters