This paper examines the current 1982/83 situation and outlook for 1983/84 for world cotton production, consumption, and trade. With global consumption still plagued by sluggish economic activity, record supplies are depressing producer prices around the world. Stocks continue to build , with the United States carrying most of the surplus. This unhealthy situation will continue until we experience a fundamental shift in the world supply-demand balance, i.e. reduced supplies and/or stronger demand. Prospects are explored for such an occurrence in 1983/84.