The U.S. Pima Cotton Industry will enter the new marketing year engaged in a dogfight with other ELS-supplying countries over an increasingly smaller world market. As world consumption of ELS cotton has declined by more than 25% since 1989, ending stocks have reached unhealthy levels for many of the major ELS exporters, including the U.S. and Egypt. The world stocks-to-use ratio is expected to reach 36% at the end of the current marketing year, compared to 40% in the U.S. and 30% for Egypt. However, a subtle increase in world ELS consumption is forecasted for the 1994 season after seven consecutive years of decline. The United States is expected to continue to reduce its supply in order to be in better position to service the world market. But, in doing so, the U.S. has entered into a split marketing system the past two seasons as the majority of the Pima produced in the three states which make up the traditional Pima Belt has been placed into the ELS loan program. Nearly all of the Pima produced in California, on the other hand, is being traded on the open market.