JULY 12, 2018

July 11 (Reuters) - ICE cotton futures slipped over 2 percent on Wednesday, to mark its biggest one-day percentage decline in three weeks, as trade tensions grew with the United States threatening 10 percent tariffs on $200 billion of imported Chinese goods.

The most active cotton contract on ICE Futures U.S., the second-month December contract              , settled down 1.84 cent, or 2.13 percent, at 84.54 cents per lb, after rising for the past three sessions.

* The contract traded within a range of 84.34 and 86.3 cents a lb.

* "There is an increasing concern that China will intensify tariffs against the U.S. if the trade war escalates," said Gabriel Crivorot, an analyst at Societe Generale in New York.

* China accused U.S. of bullying and warned it would hit back.

* The United States is the world's biggest cotton exporter, while China is the top consumer.

* Meanwhile, the markets also awaited the release of U.S. Department of Agriculture's (USDA) monthly World Agricultural Supply and Demand Estimates (WASDE) due on Thursday.

* "Everyone is probably wondering if the USDA will reduce U.S. production in tomorrow's report. It maybe too early to see a sizeable reduction but I think the expectations are that the numbers should be below 19.5 million bales," said Beau Stephenson, senior vice president at Omnicotton Inc.

* Total futures market volume fell by 2,026 to 15,941 lots.  Data showed total open interest gained 489 to 252,356 contracts in the previous session.

* Certificated cotton stocks CERT-COT-STX deliverable as of July 10 totaled 32,987 480-lb bales, down from 33,604 in the previous session.

* FAS India forecasts marketing year 2018/19 cotton production at 28.7 million 480 lb. bales on 11.85 million hectares. (Source: