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

2. Macroeconomic Environment

3. U.S. Real GDP Growth

4. U.S. Crude Oil Spot Price

5. U.S. #2 Diesel, Gulf Coast

6. Civilian Unemployment Rate

7. U.S. Federal Budget Surplus (CBO Projection)

8. CBO Ag Baseline Spending

9. Real GDP Growth in Selected Countries

10. Euro (Currency per U.S. Dollar)

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

12. Ag Prices Received Index

13. U.S. Net Farm Income

14. U.S. Cotton Supply

15. December Cotton Futures Cents per Pound

16. December Corn Futures Cents per Bushel

17. November Soybean Futures Cents per Bushel

18. Southeast2,597 3,095 19.2 Mid-South 1,920 2,280 18.8 Southwest5,886 6,488 10.2 West366 450 23.0 ALL UPLAND 10,769 12,313 14.3 ALL ELS204 253 23.7 ALL COTTON10,973 12,566 14.5 Southeast2,597 3,095 19.2 Mid-South 1,920 2,280 18.8 Southwest5,886 6,488 10.2 West366 450 23.0 ALL UPLAND 10,769 12,313 14.3 ALL ELS204 253 23.7 ALL COTTON10,973 12,566 14.5 2011 U.S. Cotton Plantings 20102011% Actual Intended* Change Actual Intended* Change 20102011% Actual Intended* Change Actual Intended* Change Thousand Acres *2011 USDA Prospective Plantings *2011 USDA Prospective Plantings

19. Southeast1,051 1,253 19.2 Mid-South 777 923 18.8 Southwest2,382 2,626 10.2 West148 182 23.0 ALL UPLAND 4,358 4,983 14.3 ALL ELS83 102 23.7 ALL COTTON4,441 5,085 14.5 Southeast1,051 1,253 19.2 Mid-South 777 923 18.8 Southwest2,382 2,626 10.2 West148 182 23.0 ALL UPLAND 4,358 4,983 14.3 ALL ELS83 102 23.7 ALL COTTON4,441 5,085 14.5 2011 U.S. Cotton Plantings 20102011% Actual Intended* Change Actual Intended* Change 20102011% Actual Intended* Change Actual Intended* Change Thousand Hectares *2011 USDA Prospective Plantings

20. U.S. Cotton Production

21. U.S. Cotton Supply

22. U.S. Cotton Demand

23. Net Domestic Fiber Consumption

24. Cotton’s Share of Fiber Consumption

25. Components of Retail Cotton Consumption

26. U.S. Cotton Textile Imports

27. U.S. Cotton Content in Textile Imports

28. U.S. Trade With Mexico

29. U.S. Trade with CBI

30. U.S. Imports from China

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

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

33. U.S. Cotton Production & Use

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

35. China Cotton Supply & Use

36. World Cotton Production

37. World Fiber Mill Use *PCI

38. Fiber Prices

39. World Cotton Mill Use

40. Foreign Cotton Production & Use

41. U.S. Cotton Exports

42. World Cotton Ending Stocks

43. Cotton Stocks/Use (World less China)

44. U.S. Supply and Demand Million Bales Beginning Stocks2.951.75 Production18.1018.00 Imports0.010.01 Total Supply20.0619.76 Mill Use3.803.80 Exports15.5013.50 Total Offtake19.3017.30 Ending Stocks1.752.50 Stocks-to-Use Ratio9.1%14.5% 2010/11e2011/12p

45. U.S. Supply and Demand Million Metric Tons Beginning Stocks0.640.38 Production3.943.92 Imports0.000.00 Total Supply4.594.31 Mill Use0.830.83 Exports3.382.94 Total Offtake4.203.77 Ending Stocks0.380.54 Stocks-to-Use Ratio9.1%14.5% 2010/11e2011/12p

46. Beginning Stocks44.2842.52 Production114.60124.72 Imports37.0039.86 Mill Use116.51119.50 Exports37.0039.87 Ending Stocks42.5247.93 Stocks-to-Use Ratio36.5%40.1% Beginning Stocks44.2842.52 Production114.60124.72 Imports37.0039.86 Mill Use116.51119.50 Exports37.0039.87 Ending Stocks42.5247.93 Stocks-to-Use Ratio36.5%40.1% World Supply and Demand Million Bales 2010/11e2011/12p

47. Beginning Stocks9.659.26 Production24.9727.17 Imports8.068.68 Mill Use25.3826.03 Exports8.068.69 Ending Stocks9.2610.44 Stocks-to-Use Ratio36.5%40.1% Beginning Stocks9.659.26 Production24.9727.17 Imports8.068.68 Mill Use25.3826.03 Exports8.068.69 Ending Stocks9.2610.44 Stocks-to-Use Ratio36.5%40.1% World Supply and Demand Million Metric Tons 2010/11e2011/12p

48. Merchants Ginners Cottonseed Producers Cooperatives Warehouses Manufacturers