NEW YORK, Aug 16: Cotton futures ended on Friday at an 11-month low on investment fund liquidation inspired by a broad sell-off across the commodity markets, and prices may slide further on follow-through pressure next week, brokers said.

The key December cotton contract sank 2.40 cents to conclude at 67.08 cents per lb. Based on the weekly charts of the contract, that would be its lowest finish since the middle of August 2007.

The contract moved from 67.01 to 69.41 cents. Volume traded in the December contract hit 16,050 lots.

Mike Stevens, an analyst for brokers SFS Futures in Mandeville, Louisiana, said the liquidation by index investors undermined commodities and placed immediate pressure on cotton.

This is an action dictated by funds deciding to liquidate positions in the commodity sector wholesale. We will be watching the dollar, the funds and other markets at the start of trading (next week), one said.

Brokers Flanagan Trading Corp sees support in the December contract at 66.60 and 65.65 cents, with resistance at 67.55 and 68.50 cents.

Volume traded on Thursday reached 8,989 lots, exchange data showed.—Reuters