World cotton supply and demand developments during the 1980's were highlighted by rather erratic gains in production, steady increases in consumption, expanding trade, and fluctuating prices. Last season's relatively low prices are boosting 1989/90 consumption while restricting production. Conversely, this season's higher cotton prices should encourage larger production in 1990/91 while holding consumption and trade 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 will continue to be limited by tight supplies. Relatively low stocks and a close balance between supply and demand also are anticipated in the Soviet Union and other major producing countries. For the longer term, prospects for global cotton indicate that production and use will continue their upward trends, likely ranging from 100-110 million bales by the year 2000. Prospects for U.S. mill use, exports, and production also are brighter.