U.S. and World Cotton Economic Outlook May 2011 Prepared by: Economic Services National Cotton Council

Macroeconomic Environment

U.S. Real GDP Growth

U.S. Crude Oil Spot Price

U.S. #2 Diesel, Gulf Coast

Civilian Unemployment Rate

U.S. Federal Budget Surplus (CBO Projection)

CBO Ag Baseline Spending

Real GDP Growth in Selected Countries

Euro (Currency per U.S. Dollar)

Real Exchange Rate Index (Other Important Trade Partners, Source – Federal Reserve )

Ag Prices Received Index

U.S. Net Farm Income

U.S. Cotton Supply

December Cotton Futures Cents per Pound

December Corn Futures Cents per Bushel

November Soybean Futures Cents per Bushel

Southeast2,597 3, Mid-South 1,920 2, Southwest5,886 6, West ALL UPLAND 10,769 12, ALL ELS ALL COTTON10,973 12, Southeast2,597 3, Mid-South 1,920 2, Southwest5,886 6, West ALL UPLAND 10,769 12, ALL ELS ALL COTTON10,973 12, U.S. Cotton Plantings % Actual Intended* Change Actual Intended* Change % Actual Intended* Change Actual Intended* Change Thousand Acres *2011 USDA Prospective Plantings *2011 USDA Prospective Plantings

Southeast1,051 1, Mid-South Southwest2,382 2, West ALL UPLAND 4,358 4, ALL ELS ALL COTTON4,441 5, Southeast1,051 1, Mid-South Southwest2,382 2, West ALL UPLAND 4,358 4, ALL ELS ALL COTTON4,441 5, U.S. Cotton Plantings % Actual Intended* Change Actual Intended* Change % Actual Intended* Change Actual Intended* Change Thousand Hectares *2011 USDA Prospective Plantings

U.S. Cotton Production

U.S. Cotton Supply

U.S. Cotton Demand

Net Domestic Fiber Consumption

Cotton’s Share of Fiber Consumption

Components of Retail Cotton Consumption

U.S. Cotton Textile Imports

U.S. Cotton Content in Textile Imports

U.S. Trade With Mexico

U.S. Trade with CBI

U.S. Imports from China

U.S. Cotton Mill Use (Calendar Year, Million Bales)

U.S. Cotton Mill Use (Crop Year, Million Bales)

U.S. Cotton Production & Use

The World Market & U.S. Cotton Exports

China Cotton Supply & Use

World Cotton Production

World Fiber Mill Use *PCI

Fiber Prices

World Cotton Mill Use

Foreign Cotton Production & Use

U.S. Cotton Exports

World Cotton Ending Stocks

Cotton Stocks/Use (World less China)

U.S. Supply and Demand Million Bales Beginning Stocks Production Imports Total Supply Mill Use Exports Total Offtake Ending Stocks Stocks-to-Use Ratio9.1%14.5% 2010/11e2011/12p

U.S. Supply and Demand Million Metric Tons Beginning Stocks Production Imports Total Supply Mill Use Exports Total Offtake Ending Stocks Stocks-to-Use Ratio9.1%14.5% 2010/11e2011/12p

Beginning Stocks Production Imports Mill Use Exports Ending Stocks Stocks-to-Use Ratio36.5%40.1% Beginning Stocks Production Imports Mill Use Exports Ending Stocks Stocks-to-Use Ratio36.5%40.1% World Supply and Demand Million Bales 2010/11e2011/12p

Beginning Stocks Production Imports Mill Use Exports Ending Stocks Stocks-to-Use Ratio36.5%40.1% Beginning Stocks Production Imports Mill Use Exports Ending Stocks Stocks-to-Use Ratio36.5%40.1% World Supply and Demand Million Metric Tons 2010/11e2011/12p

Merchants Ginners Cottonseed Producers Cooperatives Warehouses Manufacturers