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COTTON AT FRESH HIGH AS USDA WARNS ON SUPPLY

Cotton prices hit a fresh two-year high yesterday after the US Department of Agriculture warned that the world’s inventories of the fibre would drop this year to the lowest in more than 15 years amid strong demand from China.

The USDA raised its forecast for Chinese cotton imports by 7.3 per cent to 12.5m bales on the back of “stronger domestic demand”.

Cotton, like copper, is seen as a barometer for the global economy since demand moves in step with economic growth.

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