Cotton posted high gains on Tuesday amid speculations that dollar decline was increasing demand for futures traded in New York.

Cotton futures for May delivery increased by 4.7 percent, or 3.66 cents, to 80.94 cents a pound on ICE Futures U.S., the former New York Board of Trade.

The U.S. Department of Agriculture (USDA) last month forecasted the area planted with cotton in the U.S. to fall to 9.5 million acres this year from 10.83 million acres in 2007 as soybeans and wheat continue gaining boosted by increasing global demand and lower inventories.

Food costs in China, the world's biggest importer of soybeans, increased by 23 percent after blizzards severely damaged crops causing food shortages.

The increase in food prices in China was forecasted to prompt more acres to be planted with soybeans reducing acres planted with cotton.

The USDA today reduced its U.S. cotton exports by 7.6 percent to 14.5 million bales after futures increased by 21 percent in February reaching 92.86 cents a pound on March 5.