U.S. cotton stocks are forecast to rise about 2 million bales to 4.7 million by the end of this season, and stocks could rise even further during 1985/86 (table 1). Stocks are rising, despite restrictive acreage reduction requirements in the 1984 and 1985 cotton programs, because of record yields in 1984, and because both mill use and exports are declining. Mill use has trended lower since the aid-1960's, and slower economic growth coupled with growing textile imports will likely cause that trend to continue. Exports averaged 5.7 million bales during the past decade, and increased production in China will make it difficult to exceed that average. About three-fourths of the upland cotton base acreage will probably be enrolled in the 1985 program. Consequently, planted acreage will probably fall below 11 million in 1985, and production could range between 10 and 12.5 million bales.