"Although some outstanding gaps remain unfilled for nearby shipment, the focus of mill demand is steadily shifting to requirements during the second half of the year. However, a divergence between the forward price ideas of buyers and selle Rs continues to restrict the volume of new crop business," said Cotlook ltd, the Liverpool-based cotton information company.

Cotlook reported that African 'franc zone' strict middling, and Australian strict middling both rose from Friday by 0.50 cents per pound to 66.00 C/lb and 71.25 C/lb respectively Monday. Both US Texas middling and US Memphis middling also rose by 0.50 C/L B from Friday to 69.00 C/lb and 73.25 C/lb respectively Monday.

However, sudan barakat and sudan acala remained unchanged from Friday a 84.50 C/lb and 62.50 C/lb respectively Monday

Cotlook's index a rose by 0.20 cents per pound fromFriday to 64.40 C/lb Monday, while cotlook's index B was unquoted Monday.

Meanwhile, cotton futures on the New York cotton exchange settled higher on the day Monday, mostly on speculative buying, analysts said.

The market rose on weather-related buying, said Ann Prender Gast, analyst with Refco inc. In New York. Southern US planting areas are now getting harmful hot weather, and the recent heavy rains in California delayed planting of the 1998-99 cotton crop in that state, she said.

Texas "has blistering hot weather," she said. "There's no rain in sight for the next 10 days," and many traders believe that "this is going to stress the cotton plants" in Texas, she said.

Weather services corp. Reports that Texas cotton-growing regions are "warm to hot, mostly dry." But futures "did not hold these gains," she said, "which makes me think that the specs were leading it up." Commercial selling at the intraday highs evidently caused the speculative buyers to liquidate, she said.