Derivative Instruments

9 Months Ended

Jul. 31, 2013

Derivative Instruments [Abstract]

Derivative Instruments

DERIVATIVE INSTRUMENTS

As of July 31, 2013, the total notional amount of the Company's outstanding corn derivative instruments was approximately 890,000 bushels that were entered into to hedge forecasted corn purchases through August 2013. There may be offsetting positions that are shown on a net basis that could lower the notional amount of positions outstanding as disclosed above.

The following tables provide details regarding the Company's derivative instruments at July 31, 2013, none of which are designated as hedging instruments:

	Balance Sheet location	Assets		Liabilities
Corn contracts	Commodity Derivative instruments	$	688	$	—
Totals		$	688	$	—

In addition, as of July 31, 2013 the Company maintained $412,000 of restricted cash related to margin requirements for the Company's commodity derivative instrument positions.

As of October 31, 2012, the total notional amount of the Company's outstanding corn derivative instruments was approximately 1,235,000 bushels that were entered into to hedge forecasted corn purchases through March 2013. There may be offsetting positions that are shown on a net basis that could lower the notional amount of positions outstanding as disclosed above.

The following tables provide details regarding the Company's derivative instruments at October 31, 2012, none of which are designated as hedging instruments:

	Balance Sheet location	Assets		Liabilities
Corn contracts	Commodity Derivative instruments	$	—	$	(45,563	)
Totals		$	—	$	(45,563	)

In addition, as of October 31, 2012 the Company maintained $494,000 of restricted cash related to margin requirements for the Company's commodity derivative instrument positions.

The following tables provide details regarding the gains and (losses) from Company's derivative instruments in statements of operations, none of which are designated as hedging instruments:

	Statement of Operations location	Three Months Ended July 31
		2013		2012
Corn contracts	Cost of Goods Sold	$	343,320	$	49,813
Total Gain		$	343,320	$	49,813

	Statement of Operations location	Nine Months Ended July 31
		2013		2012
Corn contracts	Cost of Goods Sold	$	369,902	$	(1,251,437	)
Total Gain (Loss)		$	369,902	$	(1,251,437	)