Macroeconomic Environment

1. U.S. and World Cotton Economic OutlookMay 2011Prepared by:Economic ServicesNational 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 Growthin 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. 2011 U.S. Cotton Plantings Thousand Acres 2010 2011 % Actual Intended* Change Southeast 2,597 3,095 19.2 Mid-South 1,920 2,280 18.8 Southwest 5,886 6,488 10.2 West 366 450 23.0 ALL UPLAND10,76912,31314.3 ALL ELS 204 253 23.7 ALL COTTON 10,973 12,566 14.5 *2011 USDA Prospective Plantings

19. 2011 U.S. Cotton Plantings Thousand Hectares 2010 2011 % Actual Intended* Change Southeast 1,051 1,253 19.2 Mid-South 777 923 18.8 Southwest 2,382 2,626 10.2 West 148 182 23.0 ALL UPLAND4,3584,98314.3 ALL ELS 83 102 23.7 ALL COTTON 4,441 5,085 14.5 *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 DemandMillion Bales Beginning Stocks 2.95 1.75 Production 18.10 18.00 Imports 0.01 0.01 Total Supply 20.06 19.76 Mill Use 3.80 3.80 Exports 15.50 13.50 Total Offtake 19.30 17.30 Ending Stocks 1.75 2.50 Stocks-to-Use Ratio 9.1% 14.5% 2010/11e 2011/12p

45. U.S. Supply and DemandMillion Metric Tons Beginning Stocks 0.64 0.38 Production 3.94 3.92 Imports 0.00 0.00 Total Supply 4.59 4.31 Mill Use 0.83 0.83 Exports 3.38 2.94 Total Offtake 4.20 3.77 Ending Stocks 0.38 0.54 Stocks-to-Use Ratio 9.1% 14.5% 2010/11e 2011/12p

46. World Supply and DemandMillion Bales 2010/11e 2011/12p Beginning Stocks 44.28 42.52 Production 114.60 124.72 Imports 37.00 39.86 Mill Use 116.51 119.50 Exports 37.00 39.87 Ending Stocks 42.52 47.93 Stocks-to-Use Ratio 36.5% 40.1%

47. World Supply and DemandMillion Metric Tons 2010/11e 2011/12p Beginning Stocks 9.65 9.26 Production 24.97 27.17 Imports 8.06 8.68 Mill Use 25.38 26.03 Exports 8.06 8.69 Ending Stocks 9.26 10.44 Stocks-to-Use Ratio 36.5% 40.1%

48. Producers Cooperatives Warehouses Manufacturers Ginners Cottonseed Merchants