Commitments and Contingencies

9 Months Ended

Jul. 31, 2013

Commitments and Contingencies [Abstract]

Commitments and Contingencies

COMMITMENTS AND CONTINGENCIES

Corn Storage and Grain Handling Agreement and Purchase Commitments

GFE has a corn storage and grain handling agreement with Farmers Cooperative Elevator Company (FCE), a member. Under the current agreement, GFE agrees to purchase all of the corn needed for the operation of the plant from FCE. The price of the corn purchased will be the bid price the member establishes for the plant plus a set fee per bushel. At July 31, 2013, GFE had basis contracts for forward corn purchase commitments with FCE for 1,455,000 bushels for deliveries in August and September 2013. At July 31, 2013, GFE also had 375,000 bushels of stored corn totaling approximately $2,775,000 with FCE that is included in inventory.

Ethanol Contracts

At July 31, 2013, GFE had forward contracts to sell approximately $15,980,000 of ethanol for deliveries in August 2013 through December 2013 which approximates 29% of its anticipated ethanol sales during that period.

Distillers Grain Contracts

At July 31, 2013, GFE had forward contracts to sell approximately $1,580,000 of distillers grain for deliveries in August 2013 through December 2013 which approximates 17% of its anticipated distillers grain sales during that period.

Natural Gas

HLBE has natural gas agreements with a minimum purchase commitment of approximately 1.6 million MMBTU per year until October 31, 2014.