No one is hedged beyond Q3 2011. Cotton is near $1.65. Most of retailers are probably getting $1.1 range for average cotton cost within 2011. The question is most of apparel makers will sustain major cotton cost hit in Q4 2011. The further question is whether this high cost will be here to stay or will be lessened in 2012?
Current high cotton cost is a result of 2008-9 shrinkage of cotton acreage. So it results in two consective years of lesser stock vs. consumption. Of cuz, farmer will divert acreage to cotton planting due to this higher cotton price. But it may take a couple of years for price to get back to normal.