Cotton falls further as USDA ups stocks estimate again

Oct 11 (Reuters) - Cotton prices extended losses in early trade on Thursday after the U.S. government increased its inventory forecast for the season to end-July 2013 to a record of close to 80 million 480-lb bales.

It was the third monthly increase by the U.S. Department of Agriculture since the new marketing season started on Aug. 1.

The benchmark December futures were down 1.53 percent at 71 cents per lb by 8:56 a.m. EDT (1256 GMT), having fallen as low as 70.41 cents immediately after the publication of the report. Before its release, prices were down 1.08 percent at 71.32 cents.

(Reporting by Josephine Mason in London; Editing by Dale Hudson)

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