World cotton supply and demand developments during the 1980's have been highlighted by rather erratic gains in production, steady increases in consumption, and expanding trade. Volatile prices also have been a trademark of the decade. Last season's relatively high prices are boosting 1988/89 production while holding consumption and trade close to 1987/88 levels. Conversely, current relatively low cotton prices should encourage larger use and trade in 1989/90 while holding production close to this season's level. China is expected to remain the world's number one producer and consumer, although its mill use and exports could be severely restricted by tight supplies. Relatively low stocks and a close balance between supply and demand also are anticipated in the Soviet union, Pakistan, and India. For the longer term, prospects for global cotton indicate that production and use will continue their upward trends, likely ranging from 90-100 million bales by the mid-1990's.