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

2. Macroeconomic Environment

3. Real GDP Growth in Selected Countries

4. U.S. Cotton Supply

5. December Cotton Futures Cents per Pound

6. December Corn Futures Cents per Bushel

7. November Soybean Futures Cents per Bushel

8. Southeast1,891 2,597 37.3 Mid-South 1,627 1,920 18.0 Southwest5,243 5,886 12.3 West247 366 48.1 ALL UPLAND 9,008 10,769 19.5 ALL ELS141 204 44.4 ALL COTTON9,150 10,973 19.9 Southeast1,891 2,597 37.3 Mid-South 1,627 1,920 18.0 Southwest5,243 5,886 12.3 West247 366 48.1 ALL UPLAND 9,008 10,769 19.5 ALL ELS141 204 44.4 ALL COTTON9,150 10,973 19.9 2010 U.S. Cotton Plantings 20092010% Actual Estimated* Change Actual Estimated* Change 20092010% Actual Estimated* Change Actual Estimated* Change Thousand Acres *USDA June Acreage Report - Revised *USDA June Acreage Report - Revised

9. Southeast765 1,051 37.3 Mid-South 658 777 18.0 Southwest2,122 2,382 12.3 West100 148 48.1 ALL UPLAND 3,645 4,358 19.5 ALL ELS57 83 44.4 ALL COTTON3,703 4,441 19.9 Southeast765 1,051 37.3 Mid-South 658 777 18.0 Southwest2,122 2,382 12.3 West100 148 48.1 ALL UPLAND 3,645 4,358 19.5 ALL ELS57 83 44.4 ALL COTTON3,703 4,441 19.9 2010 U.S. Cotton Plantings 20092010% Actual Estimated* Change Actual Estimated* Change 20092010% Actual Estimated* Change Actual Estimated* Change Thousand Hectares *USDA June Acreage Report - Revised

10. U.S. Cotton Production

11. U.S. Cotton Supply

12. U.S. Cotton Demand

13. Net Domestic Fiber Consumption

14. Cotton’s Share of Fiber Consumption

15. U.S. Cotton Retail Consumption 2009 2010

16. Components of Retail Cotton Consumption

17. U.S. Cotton Textile Imports

18. U.S. Cotton Content in Textile Imports

19. U.S. Trade With Mexico

20. U.S. Trade with CBI

21. U.S. Imports from China

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

23. U.S. Cotton Mill Use 2010 2009

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

25. U.S. Cotton Production & Use

26. The World Market & U.S. Cotton Exports

27. China Cotton Supply & Use

28. World Cotton Production

29. World Fiber Mill Use *PCI

30. Fiber Prices

31. World Cotton Mill Use

32. Foreign Cotton Production & Use

33. U.S. Cotton Exports

34. World Cotton Ending Stocks

35. Cotton Stocks/Use (World less China)

36. U.S. Supply and Demand Million Bales Beginning Stocks6.342.95 Production12.1918.32 Imports0.000.01 Total Supply18.5321.27 Mill Use3.463.60 Exports12.0415.75 Total Offtake15.5019.35 Ending Stocks2.951.90 Stocks-to-Use Ratio19.0%9.8% 2009/10e2010/11p

37. U.S. Supply and Demand Million Metric Tons Beginning Stocks1.380.64 Production2.663.99 Imports0.000.00 Total Supply4.044.63 Mill Use0.750.78 Exports2.623.43 Total Offtake3.384.22 Ending Stocks0.640.41 Stocks-to-Use Ratio19.0%9.8% 2009/10e2010/11p

38. Beginning Stocks60.5243.85 Production101.54115.46 Imports35.8838.32 Mill Use118.52116.58 Exports35.6038.35 Ending Stocks43.8542.84 Stocks-to-Use Ratio37.0%36.7% Beginning Stocks60.5243.85 Production101.54115.46 Imports35.8838.32 Mill Use118.52116.58 Exports35.6038.35 Ending Stocks43.8542.84 Stocks-to-Use Ratio37.0%36.7% World Supply and Demand Million Bales 2009/10e2010/11p

39. Beginning Stocks13.199.55 Production22.1225.15 Imports7.828.35 Mill Use25.8225.40 Exports7.768.36 Ending Stocks9.559.33 Stocks-to-Use Ratio37.0%36.7% Beginning Stocks13.199.55 Production22.1225.15 Imports7.828.35 Mill Use25.8225.40 Exports7.768.36 Ending Stocks9.559.33 Stocks-to-Use Ratio37.0%36.7% World Supply and Demand Million Metric Tons 2009/10e2010/11p

40. Merchants Ginners Cottonseed Producers Cooperatives Warehouses Manufacturers