DERIVATIVE INSTRUMENTS

3 Months Ended

Jan. 31, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE INSTRUMENTS

4.DERIVATIVE INSTRUMENTS

As of January 31, 2016, the total notional amount of the Company’s outstanding corn derivative instruments was approximately; 2,995,000 bushels, comprised of long corn positions on 500,000 bushels, and short corn positions on 2,455,000 bushels, 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 of January 31, 2016, the total notional amount of the Company’s outstanding ethanol derivative instruments was approximately 840,000 gallons 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 are designated as hedging instruments:

	Balance Sheet Location	Assets		Liabilities
Corn contracts	Commodity derivative instruments	$	111,363	$	—
Ethanol contracts	Commodity derivative instruments		14,875		—
Totals		$	126,238	$	—

As of October 31, 2015, the total notional amount of the Company's outstanding corn derivative instruments was approximately 1,875,000 bushels, comprised of long corn positions on 360,000 bushels, and short corn positions on 1,515,000 bushels, that were hedge forecasted corn purchases through July 2016.

The following tables provide details regarding the Company’s derivative instruments at October 31, 2015, none of which are designated as hedging instruments:

	Balance Sheet Location	Assets		Liabilities
Corn contracts	Commodity derivative instruments	$	677,149	$	—

The following tables provide details regarding the gains and (losses) from Company’s derivative instruments in its consolidated 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	$	187,387	$	14,038
Ethanol contracts	Revenues		44,747		—
Natural gas contracts	Cost of goods sold		21,550		—
Totals		$	253,684	$	14,038

As of January 31, 2016, the Company had approximately $363,000 of cash collateral (restricted cash) related to corn derivatives held by a broker.  At October 31, 2015, the Company had no cash collateral (restricted cash) related to derivatives held by a broker.