1.   As the planting of cotton begins in central Arizona, cotton prices are at their highest since the Civil War and demand is outstripping supply on the world market.

2.   Cotton merchants said they expect cotton prices to strengthen this autumn as China battles bugs and drought that threaten its crop.

3.   Cotton growers feared that more sweeping changes would invite excessive production, depress cotton prices, and discourage lending by rural bankers.

4.   Despite the reduced harvest, farm-level cotton prices will probably continue falling, Anderson said.

5.   Even with a larger cotton crop, cotton prices surged because the USDA also projected stronger demand, both from domestic mills and foreign markets.

6.   High cotton prices, weak retail sales and high debt levels are holding down sales of textiles, traders said.

7.   In NEW YORK, cotton prices fell after the government reported that U.S. exporters sold less cotton last week than traders expected amid competition from Australia and Russia.

8.   Khan said the price cut, possible only because of a worldwide slump in raw cotton prices, had wiped out profits.

9.   Lumber prices fell, while cotton prices rose.

10.   Meanwhile, cotton prices surged their daily limit amid reports West Texas is perilously close to one of its earliest freezes on record.