U.S. and World Cotton Economic Outlook December 2010 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

Southeast1,891 2, Mid-South 1,627 1, Southwest5,243 5, West ALL UPLAND 9,008 10, ALL ELS ALL COTTON9,150 11, Southeast1,891 2, Mid-South 1,627 1, Southwest5,243 5, West ALL UPLAND 9,008 10, ALL ELS ALL COTTON9,150 11, U.S. Cotton Plantings % Actual Estimated* Change Actual Estimated* Change % Actual Estimated* Change Actual Estimated* Change Thousand Acres *USDA June Acreage Report - Revised *USDA June Acreage Report - Revised

Southeast765 1, Mid-South Southwest2,122 2, West ALL UPLAND 3,645 4, ALL ELS ALL COTTON3,703 4, Southeast765 1, Mid-South Southwest2,122 2, West ALL UPLAND 3,645 4, ALL ELS ALL COTTON3,703 4, U.S. Cotton Plantings % Actual Estimated* Change Actual Estimated* Change % Actual Estimated* Change Actual Estimated* Change Thousand Hectares *USDA June Acreage Report - Revised

U.S. Cotton Production

U.S. Cotton Supply

U.S. Cotton Demand

Net Domestic Fiber Consumption

Cotton’s Share of Fiber Consumption

U.S. Cotton Retail 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

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 Ratio19.0%9.8% 2009/10e2010/11p

U.S. Supply and Demand Million Metric Tons Beginning Stocks Production Imports Total Supply Mill Use Exports Total Offtake Ending Stocks Stocks-to-Use Ratio19.0%9.8% 2009/10e2010/11p

Beginning Stocks Production Imports Mill Use Exports Ending Stocks Stocks-to-Use Ratio37.2%37.3% Beginning Stocks Production Imports Mill Use Exports Ending Stocks Stocks-to-Use Ratio37.2%37.3% World Supply and Demand Million Bales 2009/10e2010/11p

Beginning Stocks Production Imports Mill Use Exports Ending Stocks Stocks-to-Use Ratio37.2%37.3% Beginning Stocks Production Imports Mill Use Exports Ending Stocks Stocks-to-Use Ratio37.2%37.3% World Supply and Demand Million Metric Tons 2009/10e2010/11p

Merchants Ginners Cottonseed Producers Cooperatives Warehouses Manufacturers