Derivative Instruments

6 Months Ended

Apr. 30, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities Disclosure [Text Block]

4.   DERIVATIVE INSTRUMENTS

As of April 30, 2017, the total notional amount of GFE’s outstanding corn derivative instruments was approximately 2,050,000 bushels, comprised of long corn positions on 1,325,000 bushels that were entered into to hedge forecasted ethanol sales through July 2017, and short corn positions on 725,000 bushels that were entered into to hedge forecasted corn purchases through May 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, 2017, the total notional amount of GFE’s outstanding ethanol derivative instruments was approximately 2,940,000 gallons that were entered into to hedge forecasted ethanol sales through September 2017.

As of April 30, 2017, GFE had approximately $197,000 due to a broker related to margin requirements for commodity derivative instrument positions held by a broker.

As of April 30, 2017, the total notional amount of HLBE’s outstanding corn derivative instruments was approximately 3,315,000 bushels, comprised of long corn positions on 1,200,000 bushels that were entered into to hedge forecasted ethanol sales through July 2017, and short corn positions on 2,115,000 bushels that were entered into to hedge forecasted corn purchases through July 2018. There may be offsetting positions that are not shown on a net basis that could lower the notional amount of positions outstanding.

As of April 30, 2017, the total notional amount of HLBE’s outstanding ethanol derivative instruments was approximately 2,940,000 gallons that were entered into to hedge forecasted ethanol sales through September 2017.

As of April 30, 2017, HLBE maintained approximately $179,000 of cash collateral (restricted cash) and had approximately $218,000 due to broker related to corn derivatives held by a broker.

The following tables provide details regarding the Company's derivative instruments at April 30, 2017, none of which were designated as hedging instruments:

	Consolidated Balance Sheet location	Assets		Liabilities
Corn contracts - GFE	Commodity derivative instruments	$	—	$	7,813
Corn contracts - HLBE	Commodity derivative instruments		60,813		—
Ethanol contracts - GFE	Commodity derivative instruments		146,843		—
Ethanol contracts - HLBE	Commodity derivative instruments		149,780		—
Totals		$	357,436	$	7,813

The following tables provide details regarding the Company's derivative instruments at October 31, 2016, none of which were designated as hedging instruments:

	Consolidated Balance Sheet location	Assets		Liabilities
Corn contracts - GFE	Commodity derivative instruments	$	63,050	$	—
Corn contracts - HLBE	Commodity derivative instruments		388,525		—
Ethanol Contracts - GFE	Commodity derivative instruments		503,538		—
Ethanol Contracts - HLBE	Commodity derivative instruments		273,813		—
Totals		$	1,228,926	$	—

At October 31, 2016, the Company did not have any cash collateral (restricted cash) related to margin requirements for commodity derivative instrument positions held by a broker.

The following tables provide details regarding the gains (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,				Six Months Ended April 30,
	Operations Location	2017		2016		2017		2016
Corn contracts	Cost of Goods Sold	$	602,490	$	(240,768)	$	545,862	$	(23,370)
Ethanol contracts	Revenues		(689,727)		22,258		(413,470)		104,720
Natural gas contracts	Cost of Goods Sold		—		32,358		—		32,358
Total gain (loss)		$	(87,237)	$	(186,152)	$	132,392	$	113,708