Derivative Instruments

6 Months Ended

Apr. 30, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities Disclosure [Text Block]

4.   DERIVATIVE INSTRUMENTS

As of April 30, 2016, the total notional amount of the Company's outstanding corn derivative instruments was approximately 4,820,000 bushels, comprised of 1,900,000 and 2,920,000 bushel equivalent positions held by GFE and HLBE, respectively, that were entered into to hedge forecasted corn purchases through March 2017. There may be offsetting positions that are not shown on a net basis that could lower the notional amount of positions outstanding as disclosed above.

As of April 30, 2016, the total notional amount of the Company’s outstanding ethanol derivative instruments was approximately 8,400,000 gallons, comprised of approximately 4,200,000 gallons of equivalent positions held by each of GFE and HLBE that were entered into to hedge forecasted ethanol sales through August 2016.

The following tables provide details regarding the Company's derivative instruments at April 30, 2016, none of which were designated as hedging instruments:

	Balance Sheet location	Assets		Liabilities
Corn contracts - GFE	Commodity derivative instruments	$	—	$	92,250
Corn contracts - HLBE	Commodity derivative instruments		—		67,075
Ethanol contracts - GFE	Commodity derivative instruments		63,437		—
Ethanol contracts - HLBE	Commodity derivative instruments		63,437		—
Totals		$	126,874	$	159,325

In addition, at April 30, 2016, the Company maintained approximately $631,000 of restricted cash, comprised of approximately $188,000 held by GFE and $443,000 held by HLBE related to margin requirements for the Company’s commodity derivative instrument positions.

The following tables provide details regarding the Company's derivative instruments at October 31, 2015, none of which were designated as hedging instruments:

	Balance Sheet location	Assets		Liabilities
Corn contracts - GFE	Commodity derivative instruments	$	—	$	1,114
Corn contracts - HLBE	Commodity derivative instruments		677,149		—
Totals		$	677,149	$	1,114

At October 31, 2015, the Company did not have any cash collateral (restricted cash) related to commodity derivatives held by a broker.

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	Three Months Ended April 30,
	Operations Location	2016		2015
Corn contracts	Cost of Goods Sold	$	(240,768)	$	(4,257)
Ethanol contracts	Revenues		22,258		—
Natural gas contracts	Cost of Goods Sold		32,358		—
Total gain (loss)		$	(186,152)	$	(4,257)

	Statement of	Six Months Ended  April 30,
	Operations Location	2016		2015
Corn contracts	Cost of Goods Sold	$	(23,370)	$	(612,629)
Ethanol contracts	Revenues		104,720		—
Natural gas contracts	Cost of Goods Sold		32,358		—
Total gain (loss)		$	113,708	$	(612,629)