1. Cotton Economic Update National Cotton Council Mid-Year Board Meeting Amelia Island, Florida August 24-26, 2009 National Cotton Council Mid-Year Board Meeting Amelia Island, Florida August 24-26, 2009

2. Has the Economy Bottomed? Fed Chairman Bernanke thinks so – After contracting sharply over the past year, economic activity appears to be leveling out, …,and the prospects for a return to growth in the near term appear good. –the economic recovery is likely to be relatively slow at first... Fed Chairman Bernanke thinks so – After contracting sharply over the past year, economic activity appears to be leveling out, …,and the prospects for a return to growth in the near term appear good. –the economic recovery is likely to be relatively slow at first...

3. % Change in Real GDP 3 rd Q?

4. Cotton & Textile Demand

5. Textile Trade Declined thru May (Totals as reported by Global Trade Atlas)

6. US Cotton Domestic Consumption

7. More Modest Drop in US Spending for Clothing & Shoes

8. US Cotton Mill Use

9. International Markets

10. Update on Key Countries W Africa – Lower production & exports Brazil – Some quality concerns with current harvest; expected shift to soybeans Central Asia – Smaller crops due to reduced area Pakistan – No widespread concerns on production; new support to textile industry & some improvements in spinning margins W Africa – Lower production & exports Brazil – Some quality concerns with current harvest; expected shift to soybeans Central Asia – Smaller crops due to reduced area Pakistan – No widespread concerns on production; new support to textile industry & some improvements in spinning margins

11. China Cotton Supply & Use

12. China Cotton Price vs. A Index

13. Indias Min Support Price

14. India Cotton Supply & Use

15. Cotton Exports

16. US Production

17. 09 Cotton Acres @ 9.05 Million

18. US Acres & Relative Prices

19. US Cotton Production

20. Cotton Crop Conditions

21. US Supply & Demand 2009/10 Beg Stocks6.106.0-6.2 Production13.2113.2-14.0 Total Supply19.3119.2-20.2 Mill Use3.503.2-3.5 Exports10.2010.0-11.0 Ending Stocks5.604.7-7.0

22. Cotton Prices

23. Summary

24. Recovery in Mill Use?

25. Drawdown in World Stocks?

26. Have US Acres Bottomed? 10 ratios based on current Dec & Nov 10 futures contracts

27. Merchants Ginners Cottonseed Producers Cooperatives Warehouses Manufacturers