Approximately 70 percent of US cotton production is now exported. The international standard for fiber quality is Color 31/Staple 35 compared to the US base grade of 41/34. US producers must meet the demands of foreign mills. The Southeast producer has historically enjoyed a basis advantage due it geographic proximity to the US textile industry but exports now comprise the majority of the market. The Southeast producer, in some/recent years has also been challenged to improve fiber quality to meet the demands of foriegn mills. An analysis is presented which examines the change in the cash market basis over time and within the marketing year in the Southeast and compares this basis with that of other regions in the US. An analysis is also presented that examines the price premiums and discounts for various fiber quality factors and changes in the price "differences" over time. Profitability for the cotton producer is a function of yield, price, fiber quality, and costs.