Cotton prices hit a three-month high on international markets after a growers group in China said farmers plan to reduce the crop acreage this year, the Wall Street Journal reported Tuesday. Cotton for March delivery, the most actively traded contract, rose 1.2 percents to 84.67 US cents a pound on the ICE Futures exchange on Tuesday, the highest settlement price since Oct. 4, it said. The move by the cotton farmers comes as global supplies are only slightly ahead of demand. China’s finance minister said last month that the government intends to end its program for stockpiling cotton, replacing it with a system of direct subsidies to farmers like that used in the US, the Journal noted.
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