Derivative Instruments

3 Months Ended

Jan. 31, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities Disclosure [Text Block]

4.   DERIVATIVE INSTRUMENTS

As of January 31, 2016, the total notional amount of the Company's outstanding corn derivative instruments was approximately 3,835,000 bushels, comprised of 880,000 and 2,955,000 bushel equivalent positions held by GFE and HLBE, respectively, that were entered into to hedge forecasted corn purchases through December 2016. 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 January 31, 2016, the total notional amount of the Company’s outstanding ethanol derivative instruments was approximately 1,680,000 gallons, comprised of approximately 840,000 and 840,000 gallon equivalent positions held by GFE and HLBE, respectively, that were entered into to hedge forecasted ethanol sales through March 2016.

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

	Balance Sheet location	Assets		Liabilities
Corn contracts - GFE	Commodity derivative instruments	$	30,700	$	—
Corn contracts - HLBE	Commodity derivative instruments		111,363		—
Ethanol contracts - GFE	Commodity derivative instruments		14,875		—
Ethanol contracts - HLBE	Commodity derivative instruments		14,875		—
Totals		$	171,813	$	—

In addition, at January 31, 2016, the Company maintained approximately $412,000 of restricted cash, comprised of approximately $49,000 held by GFE and $363,000 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 January 31,
	Operations Location	2016		2015
Corn contracts	Cost of Goods Sold	$	195,998	$	(608,373)
Ethanol contracts	Revenues		78,556		—
Natural gas contracts	Cost of Goods Sold		32,358		—
Total gain (loss)		$	306,912	$	(608,373)