U.S. cotton stocks declined over 4 million bales during the 1986/87 marketing year. Further reductions were expected this season. However, record yields and the largest crop since 1981 will result in carryover supplies remaining near 5 million bales, 1 million above the desired level specified in the 1985 Food Security Act. The outlook through 1990 points to supplies and demand more in balance than the past few years with production and consumption ranging between 13 & 15 million bales and stocks near the 4 million bale level.