1. Cotton Economic Update Beltwide Cotton Conferences January 8-11, 2008 Nashville, TN

2. Cotton Prices

3. Cotton Production (Mil Bales) 02-062007Share World109.1118.8 1.China28.235.530% 2.India16.924.020% 3.US20.819.016% 4.Pakistan9.48.57% 5.Brazil5.57.06%

4. US Cotton 2007 Planted Area Mid-South 2,740 -35% West 693 -15% Southwest 5,150 -25% Thousand Acres & % Change from 2006 Southeast 2,264 -32%

5. Relative Futures Prices at Planting Time

6. Change in ’07 Cotton Area

7. Cotton Mill Use (Mil Bales) 02-062007Share World108.9128.3 1.China39.155.043% 2.India15.319.315% 3.Pakistan10.712.09% 4.Turkey6.77.26% 5.US6.24.64%

8. Annual Change in World Mill Use

9. Price Indices

10. China Mill Use & Imports * Crop Year estimated based on PCI Fibres data

11. China’s Prices Above A Index

12. India Emerging as Exporter

13. Indian Cotton Priced Below Other Growths

14. US Mill Use & Retail Demand

15. US Exports

16. Relative Futures Prices for ’08 Strong Competition for Acres

17. World Cotton S&D Production Expected to Fall Short of Use

18. Cotton Futures

19. MerchantsGinnersCottonseed Producers Cooperatives WarehousesManufacturers