According to a spokesman from the Brazilian Ministry of Agriculture, Husbandry and Supplies, cotton export volumes are now 30% lower than they were last year due to the fact that that approximately 550,000 tons, or 60%, of the cotton harvest was sold in advance when the dollar exchange rate was over R$2. Calculations show that the export parity is currently R$0.90/pound (US$0.47/pound) for an average price of R$1.15/pound ($0.60/pound) in São Paulo and between R$1.05 ($0.55/pound) and R$1.10/pound in the centre/west and Bahia.

After a 15% decline in May, average June prices have been the lowest seen in the last ten years and have actually fallen below production costs. Analyst at market consultancy company Safras & Mercado, Miguel Biegai Júnior, said, "Cotton producers are losing money and no longer wish to sell. They have reached their limit.” Therefore, according to the National Supply Company (Conab), cotton exports are fully reliant on a government subsidy of R$0.25/pound to cover approximately 50% of the 1.4 million ton harvest.