2. World Real GDP Growth IMF, January 2013

3. NCC Acreage Survey Distributed on Dec 18 Responses collected through Jan 23 Asked for acres of upland cotton, ELS cotton, corn, soybeans, wheat, Other crops in ‘12 and intentions for ’13; also asked price expectations

4. Pre-Planting Market Signals CottonCornSoybeansCot/CornCot/Soy 201378.96¢ $5.92$12.9413.36.1 201292.08¢ $5.65$12.5916.37.3 2011118.08¢ $5.88$13.3120.18.9 201073.70¢ $4.04$9.3718.37.9 200951.65¢ $4.17$8.9812.45.8 200880.72¢ $5.36$12.7315.06.3

5. U.S. Cotton Area & Prices

6. 2013 Southeast Acreage 2012 Actual 2013 Intended % Change Alabama 380320-15.7 Florida 108103-4.5 Georgia 1,2901,093-15.3 North Carolina 585398-32.0 South Carolina 299265-11.4 Virginia 8662-28.3 Southeast 2,7482,241-18.5 Total may not add due to rounding.

7. 2013 Mid-South Acreage 2012 Actual 2013 Intended % Change Arkansas 595221-62.9 Louisiana 230144-37.3 Mississippi 475199-58.1 Missouri 350239-31.6 Tennessee 380199-47.6 Mid-South 2,0301,003-50.6 Total may not add due to rounding.

8. Arkansas Crop Returns

9. 2013 Southwest Acreage 2012 Actual 2013 Intended % Change Kansas 5650-10.4 Oklahoma 305267-12.3 Texas 6,5504,910-25.0 Southwest 6,9115,228-24.4 Total may not add due to rounding.

10. 2013 West Acreage 2012 Actual 2013 Intended % Change Arizona 200193-3.6 California 142112-21.4 New Mexico 4636-21.0 West 388341-12.2 Total may not add due to rounding.

11. 2013 ELS Acreage 2012 Actual 2013 Intended % Change Arizona 33-16.0 California 225190-15.6 New Mexico 22-26.0 Texas 883.9 ALL ELS 238203-15.0 Total may not add due to rounding.

12. % Changes in Futures Prices

13. U.S. Cotton Production 13.30 12.86

14. U.S. Balance Sheet 10/1111/1212/1313/14Change Production18.1015.5717.0112.86-4.15 Mill Use3.903.303.43 Exports14.3811.7112.20 Stocks2.603.354.77 Stocks/Use14%23%31% Million Bales

15. Cotton’s Share of U.S. NDC

16. Apparel Import Per-Unit Values

17. Net Domestic Fiber Consumption

18. U.S. Balance Sheet 10/1111/1212/1313/14Change Production18.1015.5717.0112.86-4.15 Mill Use3.903.303.433.480.05 Exports14.3811.7112.20 Stocks2.603.354.77 Stocks/Use14%23%31% Million Bales

19. Int’l Area (Excluding China)

20. Int’l Mill Use (Excluding China)

21. Yarn Export Values – Cotton Price

22. Fiber Prices

23. Yarn Export Values – Cotton Price

24. China Cotton Yarn Imports

25. China Cotton Use

26. China’s Reserves: The Big Unknown 12/1313/14Change Mill Use35.534.3-1.2 Production33.530.7-2.8 Gov’t Purchases28.526.1-2.4 Gov’t Sales16.121.04.9 Stocks40.643.83.2 Gov’t Reserves33.838.85.0 Imports12.56.9-5.6 Million Bales

27. World Cotton Trade

28. U.S. Balance Sheet 10/1111/1212/1313/14Change Production18.1015.5717.0112.86-4.15 Mill Use3.903.303.433.480.05 Exports14.3811.7112.2010.61-1.59 Stocks2.603.354.773.55-1.23 Stocks/Use14%23%31%25% Million Bales

29. World Balance Sheet 11/1212/1313/14Change Production124.1118.8110.1-8.7 Mill Use103.1106.1108.72.6 Trade44.738.935.9-3.0 Stocks68.981.783.11.4 China Reserves21.433.838.85.0 Other Stocks47.547.944.3-3.6 Million Bales

30. Cotton Trade Balance Production less Use Outside China China Imports Difference 2010/1117.812.05.8 2011/1225.924.51.4 2012/1314.712.52.2 2013/144.96.9-2.0 Buy & Sell4.94.10.8 Buy & Hold4.911.0-6.1 Million Bales

31. Summary Points Resistance breaking out of recent price range – China reserves a key factor – Sustaining demand Smaller U.S. acreage & production in ‘13 – Remember: $6 corn & $13 soybeans resulted from severe drought; markets could change quickly – ‘14 could look much different

32. Questions Going Forward

33. Growth in China Fiber Mill Use? China’s 5-Year Plan

34. Shifts in Cotton Mill Use?

35. Markets for U.S. Cotton?