Good morning, ladies and gentlemen.

It is indeed exciting for me to be back at the Beltwide Conference to have an opportunity to share my thoughts on the domestic and world cotton outlook and what the potential effect will be on U.S. and world prices for the next eighteen months.

I can assure you watching the last eight weeks of the movement of cotton prices in this country and abroad has certainly been an education for me and the entire cotton industry. Finally, the fundamentals look friendly for the first time in three years.

This morning I would like to break my comments into four parts:

First, the domestic supply and demand conditions for the current marketing year, and then a projection for 1994-95.

Second, the world supply and demand situation for both the balance of this season and projections for next season, and I think what we will see in the world numbers will establish the criteria that can have a major impact on U.S. and world prices for next season.

Third, my own reflections on the price movement for the New York Futures Market and world markets for the next eighteen months.

Fourth, my personal feeling on the current farm legislation and future farm legislation on how it will affect you as a cotton producer.