U.S. Pima production capped off five consecutive years of steady growth with an estimated 85% increase in the 1989/90 season. Strong early-season contract prices were offset by a late collapse in spot prices, but the average farm price should still come in at/or above the target price. Though stocks will hit their highest level since 1967, increased production at home -combined with unexpected tight supplies from key competitors -will help to make the U.S. the number one exporter of Extra Long Staple (ELS) cotton for 1989/90. The outlook into 1992 points to U.S. Pima supply and use more in balance than in 1989. Prices have leveled and should remain relatively stable into the coming season, with average farm prices the next two seasons expected to come in slightly less than this years.