The analysis of the West Texas and East Texas/Oklahoma spot market using the Daily Price Estimation System (DPES) indicated an overall increase in quality in the 2003/04 marketing year. The results also indicated an overall price increase compared to the last four years, averaging 63.68 cents a pound. The combined total bales and total sales between the two regions were lower in 2003/04, with most of the decrease due to lower sales in West Texas. Total sales in East Texas/Oklahoma did not change much and total bales were 15 percent higher than their 2002/03 level. For the 2003/04 marketing year, the results indicated lower premiums for low leaf grade and higher premiums for higher staple length, color grade, and higher level of strength. However, premium levels for better than base quality first digit color grade appear to be minimal. Price discounts in 2003/04 for staple length, first and second digit color grade, strength, and uniformity either remained unchanged or decreased, while discounts for leaf, micronaire, and bark increased compared to the 2002/03 levels.