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Derivative Instruments
 12 Months Ended
Oct. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments
DERIVATIVE INSTRUMENTS

As of October 31, 2019, the Company had entered into corn, ethanol and natural gas derivative instruments, which are required to be recorded as either assets or liabilities at fair value in the balance sheet. The Company uses these instruments to manage risks from changes in market rates and prices. Derivatives qualify for treatment as hedges when there is a high correlation between the change in fair value of the derivative instrument and the related change in value of the underlying hedged item. The Company may designate the hedging instruments based upon the exposure being hedged as a fair value hedge, a cash flow hedge or a hedge against foreign currency exposure. The derivative instruments outstanding at October 31, 2019 are not designated as effective hedges for accounting purposes.

Commodity Contracts

Management expects all open positions outstanding as of October 31, 2019 to be realized within the next twelve months.

The following tables provide details regarding the Company's derivative instruments at October 31:
          Instrument
Balance Sheet location
 
 
 
 
 
2019
2018
 
 
 


Corn, natural gas and ethanol contracts
 
 
 
 
In gain position
 
 
$
124,069

$
—

In loss position
 
 
(775,887
)
(2,280,280
)
Deposits with broker
 
 
1,121,558

3,223,165

 
Current assets
 
$
469,740

$
942,885



The following tables provide details regarding the gains (losses) from the Company's derivative instruments in the statements of operations, none of which are designated as hedging instruments:
 
 
Statement of
 
Year Ended October 31
 
 
Operations location
 
2019
2018
2017
Ethanol contracts
 
Revenues
 
(240,284
)
(81,032
)
568,715

Corn contracts
 
Cost of goods sold
 
(835,456
)
(149,323
)
1,751,018

Natural gas contracts
 
Cost of goods sold
 
21,833

38,137

11,267