DERIVATIVE INSTRUMENTS (Tables)

6 Months Ended

Apr. 30, 2020

Schedule of derivative instruments in Statements of Financial Position

The following tables provide details regarding the Company's derivative instruments at April 30, 2020, none of which were designated as hedging instruments:


	Consolidated Balance Sheet Location	Assets		Liabilities
Corn contracts - GFE	Commodity derivative instruments	$	359,269	$	—
Corn contracts - HLBE	Commodity derivative instruments		—		227,550
Ethanol contracts - HLBE	Commodity derivative instruments		—		14,100
Totals		$	359,269	$	241,650

As of October 31, 2019, the total notional amount of GFE’s outstanding corn derivative instruments was approximately 7,495,000 bushels, comprised of long corn futures positions on 3,345,000 bushels that were entered into to hedge forecasted ethanol sales through July 2020, and short corn futures positions on 4,150,000 bushels that were entered into to hedge forecasted corn purchases through December 2022. Additionally, there are corn options positions of 4,000,000 bushels through March 2020. There may be offsetting positions that are not shown on a net basis that could lower the notional amount of positions outstanding.

As of October 31, 2019, GFE did not have any cash collateral (restricted cash) related to derivatives held by a broker.

As of October 31, 2019, the total notional amount of HLBE’s outstanding corn derivative instruments was approximately 5,398,000 bushels, comprised of long corn futures positions on 2,131,000 bushels that were entered into to hedge forecasted ethanol sales through July 2020, and short corn futures positions on 3,267,000 bushels that were entered into to hedge forecasted corn purchases through December 2021. Additionally, there are corn options positions of 4,000,000 bushels through March 2020. There may be offsetting positions that are not shown on a net basis that could lower the notional amount of positions outstanding.

As of October 31, 2019, HLBE had approximately $52,000 in cash collateral (restricted cash) related to derivatives held by a broker.

The following tables provide details regarding the Company's derivative instruments at October 31, 2019, none of which were designated as hedging instruments:


	Consolidated Balance Sheet Location	Assets		Liabilities
Corn contracts - GFE	Commodity derivative instruments	$	612,713	$	—
Corn contracts - HLBE	Commodity derivative instruments		20,060		—
Ethanol contracts - GFE	Commodity derivative instruments		114,562		—
Ethanol contracts - HLBE	Commodity derivative instruments		75,763		—
Totals		$	823,098	$	—

Schedule of gains (losses) from derivative instruments


	Consolidated Statement	Three Months Ended April 30,				Six Months Ended April 30,
	of Operations Location	2020		2019		2020		2019
Corn contracts	Cost of Goods Sold	$	(563,645)	$	281,424	$	(723,863)	$	325,652
Ethanol contracts	Revenues		(205,930)		(36,833)		(416,323)		(36,833)
Total gain (loss)		$	(769,575)	$	244,591	$	(1,140,186)	$	288,819