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DERIVATIVE INSTRUMENTS (Tables)
 9 Months Ended
Jul. 31, 2020
DERIVATIVE INSTRUMENTS  
Schedule of derivative instruments in Statements of Financial Position

The following tables provide details regarding the Company's derivative instruments at July 31, 2020,  none of which were designated as hedging instruments:

 

 

 

 

 

 

 

 

 

 

 

 

    

Consolidated Balance Sheet Location

    

Assets

    

Liabilities

 

Corn contracts - GFE

 

Commodity derivative instruments

 

$

395,281

 

$

 —

 

Corn contracts - HLBE

 

Commodity derivative instruments

 

 

28,492

 

 

 —

 

Ethanol contracts - GFE

 

Commodity derivative instruments

 

 

 —

 

 

32,500

 

Ethanol contracts - HLBE

 

Commodity derivative instruments

 

 

 —

 

 

31,826

 

Totals

 

 

 

$

423,773

 

$

64,326

 

 

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  July 31, 

 

Nine Months Ended July 31,

 

    

 of Operations Location

    

2020

    

2019

 

2020

    

2019

    

Corn contracts

 

Cost of Goods Sold

 

$

(297,465)

 

$

1,019,477

 

$

(1,021,328)

 

$

1,345,128

 

Ethanol contracts

 

Revenues

 

 

(72,848)

 

 

292,681

 

 

(489,171)

 

 

255,848

 

Total gain (loss)

 

 

 

$

(370,313)

 

$

1,312,158

 

$

(1,510,499)

 

$

1,600,976