The volume of the Texas-Oklahoma spot cotton market analyzed by the Daily Price Estimation System (DPES) for the 2002/03 marketing year increased from 364,267 bales the previous year to 606,661 bales this year. The average price received by producers during the 2002/03 marketing year was 41.98 cents/lb, which is about 16 cents/lb. higher than the previous year. The 2002 crop was generally of good quality. The average micronaire level was slightly lower in 2002 at 4.33, and the average number of bales having level 1 bark was up in comparison to the 2002 crop. With the exception of strength and micronaire, price discounts for the 2002 crop increased for all quality attributes. Premiums remained about the same for all quality attributes with the exception of leaf. The premiums for lower levels of leaf in the 2002-03 market year showed a relative increase. In regard to strength, the first digit of the color grade, and staple length, producers did not appear to receive much of a premium for better than base qualities.