Investments

9 Months Ended

Jun. 30, 2011

Investments

Investments

(4)           Investments

Commodities trading accounts — futures and options contracts

The Company attempts to minimize the effects of fluctuations in the price of agricultural commodities by using derivative instruments, including futures and options contracts, swap agreements and options to fix prices for a portion of grain and natural gas required in the production process.  The Company has designated, documented and assessed for hedge relationships, which primarily resulted in cash flow hedges that require the Company to record the derivative assets and liabilities at their fair market value on the balance sheet with an offset in the other comprehensive income. Amounts are removed from other comprehensive income as the underlying transactions occur and realized gains and losses are recorded.  During the three and nine month periods ended June 30, 2011, the Company has included in its cost of sales an aggregate of $13,213 in realized losses and $94,442 in realized gains, respectively, as compared to $57,804 and $247,583 in realized losses for the comparable periods ended June 30, 2010 related to its hedging activities in grain and energy futures contracts.

In the three and nine months ended June 30, 2011, unrealized gains recognized as comprehensive income were $214,050 and $613,194, respectively, as compared to unrealized losses of $58,661 and $449,469 for the comparable periods ended June 30, 2010. At June 30, 2011, the commodities trading account-futures and options contracts amounted to $496,056, which represents the lower of cost or market value of the futures and options contracts recorded on the balance sheet.