MP_CN002    Memphis, TN Cotton Program, MNB           20-Dec-04
Spot quotations and differences are for cotton equal to the official standards, net weight, in mixed lots.    Upland quotations are
FOB car/truck which includes compression and any brokerage charges.   American Pima quotations are FOB warehouse
and do not include compression charges.  The upland base quality is color 41, leaf grade 4, staple 34 (1.05 to 1.07),
mike 3.5, 3.6 and 4.3 to 4.9, strength 26.5 to 28.4 grams per tex and uniformity 81.

                   UPLAND SPOT PRICE QUOTATIONS        SPOT TRANSACTIONS

                                 Color 41  Color 31 Usuable sales provided
Growth        Basis                Leaf 4    Leaf 3 to Cotton Programs
Area          N.Y. Futures      Staple 34 Staple 35      Today        Season
               Points  Month    cents/lb. cents/lb.      bales         bales

Southeast      -200     Mar-05       41.99     43.74        999        85,889
North Delta    -200     Mar-05       41.99     46.24        940       130,267
South Delta    -200     Mar-05       41.99     46.49      1,600       127,660
East TX-OK     -424     Mar-05       39.75     43.25        821       142,798
West Texas     -424     Mar-05       39.75     43.00      7,506       224,243
Desert SW       0       Mar-05       43.99     49.49      1,000        18,513
SJ Valley      200      Mar-05       45.99     55.99      3,000        12,061
                                                    Upland total
Average        -178     Mar-05       42.21     46.89     15,866       741,431
Previous       -175     Mar-05       42.38     47.06


            AMERICAN PIMA SPOT PRICE QUOTATIONS

                        Grade 2   Grade 3   Grade 3    SPOT TRANSACTIONS
                      Staple 46 Staple 44 Staple 46
Desert SW                 109.25     87.50     91.75        400         3,570
SJ Valley                 112.25     91.25     94.50          0        31,045
                                                           AP total
                                                            400        34,615


NEW YORK FUTURES - CONTRACT NO. 2   2/              7-MARKET AVERAGE
COLOR 41 LEAF 4, STAPLE 34, MIKE 35-49,             BASE QUOTATIONS
STRENGTH 22 OR GREATER.                             FOR UPLAND COTTON

Month       Cents per pound                                Season high
                Today  Previous    Change              9/2/2004         51.11
Mar-05           43.99     44.13     -0.14                 Season low
May-05           43.86     44.08     -0.22           12/10/2004         40.94
Jul-05           44.50     44.55     -0.05
Oct-05           46.30     46.45     -0.15          EFFECTIVE   Dec 17-Dec 23
Dec-05           47.40     47.55     -0.15                 AWP          33.48
Mar-06           49.45     49.55     -0.10             CC ADJ.           0.00
May-06           50.35     50.45     -0.10                 LDP          18.52
Jul-06           51.30     51.40     -0.10          EFFECTIVE   Dec 17-Dec 23
Oct-06           51.40     51.50     -0.10                 PCP          40.40
Dec-06           52.40     52.50     -0.10          Step 2 PMT           3.46





AVERAGE PREMIUMS AND DISCOUNTS - TENDERABLE QUALITIES 3/

                COLOR     COLOR     COLOR     COLOR      COLOR
                    11        21        31        41         51
 STAPLE 33
 LEAF 1 & 2        155       155       105       -53       -260
     3             145       145        95       -63       -260
     4               8         8       -45      -128       -285
     5            -208      -208      -228      -255       -408
 STAPLE 34
 LEAF 1 & 2        365       365       240        85       -125
     3             315       315       215        70       -130
     4             145       145       100         0       -175
     5             -68       -68      -133      -170       -293
 STAPLE 35
 LEAF 1 & 2        495       495       403       180        -68
     3             430       430       368       158        -73
     4             283       283       238       100       -118
     5             125       125        80       -63       -233

                COLOR     COLOR     COLOR
                    12        22        32
 STAPLE 33
 LEAF 1 & 2        -38       -38      -113
     3             -53       -53      -123
     4                         0
     5                         0
 STAPLE 34
 LEAF 1 & 2        105       105        18
     3              95        95         3
     4                         0
     5                         0
 STAPLE 35
 LEAF 1 & 2        245       245       123
     3             225       225        98
     4                         0
     5                         0

1/  Settlement prices provided by New York Cotton Exchange.  2/ The average of the
differences from the Southeast, North and South Delta average, East Texas-Oklahoma,
West Texas, and Desert Southwest markets.

Stokes Quisenberry
Cotton Program, Market News Branch
3275 Appling Rd
Memphis, TN  38133
(901) 384-3016
www.ams.usda.gov/cotton/mncs/index.htm
stokes.quisenberry@usda.gov