Related Keywords: China, cotton, planting acreage, USDA report
China, the world’s largest producer of the fiber decision to reduce planting acreage by nearly 9% in 2014 as resulted in sharp rise of cotton futures in early trade Tuesday.
Cotton for March delivery rose 1 cent, or 1.2%, to 84.67 cents a pound. Futures had risen as much as 1.7% in overnight trading.
The China Cotton Association said that plantings would decline to an estimated 4.2 million hectares for the third year in a row. Sharon Johnson, a senior cotton specialist at KCG Futures in Atlanta, said that the resulting yields from China could reach their lowest level since 2005.
