Good morning, ladies and gentlemen.

It's an honor and a privilege to be back at the Beltwide again this year. This Conference continues to grow and prosper and is recognized today as the most important meeting for cotton producers in the U.S., as it pertains to new cotton production technology and ideas in the production and marketing of cotton.

Last year I said I wasn't sure I was qualified to speak on the cotton market after watching a record U.S. crop produced and then watching U.S. cotton prices soar to a level of $1.17. This year I am even more positive I am not qualified, after seeing another record U.S. crop projected in August and seeing prices move to a level in September of 95.20, basis March futures, as this record crop began to deteriorate. Prices have dropped approximately 12 cents, basis March futures, from their high in September 1995. To some it is puzzling, but the key has been our domestic demand has not kept pace with last season.