COMMITMENTS AND CONTINGENCIES	9 Months Ended
Jul. 31, 2020
COMMITMENTS AND CONTINGENCIES.
COMMITMENTS AND CONTINGENCIES	9.COMMITMENTS AND CONTINGENCIES Corn Forward Contracts At July 31, 2020, the Company had cash and basis contracts for forward corn purchase commitments for approximately 4,613,000 bushels for deliveries through March 2021. Given the uncertainty of future ethanol and corn prices, the Company could incur a loss on the outstanding corn purchase contracts in future periods. Management has evaluated these forward contracts and its inventories using the lower of cost or net realizable value evaluation, similar to the method used on its inventory, and has determined that an impairment loss of $824,000 existed at July 31, 2020, and no impairment loss existed at or October 31, 2019. Ethanol Forward Contracts At July 31, 2020, the Company had forward contracts to sell approximately $6,069,000 of ethanol for various periods through September 2020. Distillers’ Grains Forward Contracts At July 31, 2020, the Company had forward contracts to sell approximately $325,000 of distillers’ grains for delivery through December 2020. Corn Oil Forward Contracts At July 31, 2020, the Company had contracts to sell approximately $701,000 of corn oil for delivery through September 2020. Rail Car Rehabilitation Costs The Company leases 50 hopper rail cars under a multi-year agreement which ends in May 2027. Under the agreement, the Company is required to pay to rehabilitate each car for “damage” that is considered to be other than normal wear and tear upon turn in of the car(s) at the termination of the lease. Prior to the year ending October 31, 2019, the Company believed ongoing repairs resulted in an insignificant future rehabilitation expense. During the year ending October 31, 2019, based on new information, we re-evaluated our assumptions and believe that it is probable that we may be assessed for damages incurred. Company management has estimated total costs to rehabilitate the cars at July 31, 2020 and October 31, 2019 to be approximately $585,000 and $551,000, respectively. During the three and nine months ended July 31, 2020, the Company has recorded an expense in cost of goods of approximately $16,000 and $70,000, respectively.

9.COMMITMENTS AND CONTINGENCIES

Corn Forward Contracts

At July 31, 2020, the Company had cash and basis contracts for forward corn purchase commitments for approximately 4,613,000 bushels for deliveries through March 2021.

Given the uncertainty of future ethanol and corn prices, the Company could incur a loss on the outstanding corn purchase contracts in future periods. Management has evaluated these forward contracts and its inventories using the lower of cost or net realizable value evaluation, similar to the method used on its inventory, and has determined that an impairment loss of $824,000 existed at July 31, 2020, and no impairment loss existed at or October 31, 2019.

Ethanol Forward Contracts

At July 31, 2020, the Company had forward contracts to sell approximately $6,069,000 of ethanol for various periods through September 2020.

Distillers’ Grains Forward Contracts

At July 31, 2020, the Company had forward contracts to sell approximately $325,000 of distillers’ grains for delivery through December 2020.

Corn Oil Forward Contracts

At July 31, 2020, the Company had contracts to sell approximately $701,000 of corn oil for delivery through September 2020.

Rail Car Rehabilitation Costs

The Company leases 50 hopper rail cars under a multi-year agreement which ends in May 2027. Under the agreement, the Company is required to pay to rehabilitate each car for “damage” that is considered to be other than normal wear and tear upon turn in of the car(s) at the termination of the lease. Prior to the year ending October 31, 2019, the Company believed ongoing repairs resulted in an insignificant future rehabilitation expense. During the year ending October 31, 2019, based on new information, we re-evaluated our assumptions and believe that it is probable that we may be assessed for damages incurred. Company management has estimated total costs to rehabilitate the cars at July 31, 2020 and October 31, 2019 to be approximately $585,000 and $551,000, respectively. During the three and nine months ended July 31, 2020, the Company has recorded an expense in cost of goods of approximately $16,000 and $70,000, respectively.